Plaintiff's Expected Value

A Note From Steve

This tool suggests one way of thinking about the value of a claim by adjusting for three things: the probability of winning, the time value of money, and the costs of getting there. The discount rate reflects that a dollar today is worth more than a dollar several months or years from now after trial. Costs include not just attorney fees and litigation expenses but also intangible costs like stress, lost time, and reputational risk – don't underestimate these costs! Test your assumptions a few ways to develop a sense of what the claim is worth, remembering there are no sure things in litigation and most litigants tend to be overly optimistic about their chances.