Still, we need to have a frank conversation about exactly that: how long lawsuits take, and how much they cost.
Xerox just ended a 13-year legal saga with a $9.1 million settlement to a class of 5,700 call center employees. The lawsuit challenged the company's Achievement-Based Compensation plan, which paid employees by task and offered bonuses to meet minimum wage thresholds—but didn't cover time spent logging in, waiting between calls, or doing other required non-task work.
Think about that. Years of disruption. Thousands of work hours lost to discovery, motions, depositions, hearings, and appeals. Millions in legal fees. All to land on a settlement that isn't remotely material to a $7 billion company.
Here are 6 hard truths about litigation every business should understand:
1. It will cost a lot.
More than you think. More than it should.
2. It will eat your time.
You'll spend hours gathering documents, meeting with your attorneys, answering discovery, and attending depositions, pretrials, and settlement conferences. On top of your legal fees, you'll pay in lost productivity.
3. It will last longer than you expect.
Litigation is a marathon with a moving finish line. Deadlines are far off and often get extended, usually for reasons outside your control. The longer it takes, the more it costs.
4. Not every decision will go your way.
You'll win some motions, and you'll lose some. Some will matter more than others. Don't get mad at me. Don't get mad at the judge. This is the process. If your side won every issue, there'd be nothing to litigate in the first place.
5. Every case carries risk.
Clients always ask, "How strong is our case?" or "What are our odds?" The honest answer: it's never 100%, and it's usually a lot less. Even with great facts and the law on your side, litigation is unpredictable. Judges and juries are human. Outcomes can turn on issues that have little to do with the actual merits. If you can't stomach risk, the smarter move may be to settle, which is the only way to guarantee a result.
6. Winning can still feel like losing.
Even if you win, you will lose time, money, morale, and momentum. You probably won't recover your attorneys' fees. There are usually appeals, which lead to more time and money. Often, a verdict just guarantees more litigation.
Litigation is sometimes necessary. But it should never be your default.
If you're staring down a potential lawsuit, ask yourself, early and often, what's the endgame? Because if you're going to spend years and millions only to settle for a number that doesn't move the needle, maybe the real victory is knowing when to walk away from the courtroom (or never enter it in the first place) and strike a smart deal instead.