How Early Motions Can Control Legal Costs in a Business Dispute

Early motions to control business litigation costs are one of the most underutilized tools available to business owners at the start of a lawsuit. This matters because litigation is not just a legal risk: it is a measurable financial one. A nationwide survey of major companies conducted by the U.S. Courts found that litigation costs averaged nearly 0.6 percent of annual revenue, and that those costs continued to grow over time, with U.S.-based litigation proving significantly more expensive than disputes handled in foreign jurisdictions. For many businesses, especially those operating in California’s high-stakes legal environment, those numbers translate into real pressure on cash flow, operations, and long-term planning.

In California business litigation, legal fees often escalate not because a case is unusually complex, but because it proceeds into discovery without a clear early strategy. Early motion practice allows business owners to address legal weaknesses, narrow claims, and challenge procedural issues before discovery, expert witnesses, and trial preparation consume substantial resources. When used correctly, early motions give businesses an opportunity to control the pace, scope, and overall cost of a dispute before litigation expenses begin to compound.

This article, written for business owners, executives, and in-house decision-makers, explains how strategic motion practice at the outset of a case can reduce discovery expenses, narrow legal issues, force early leverage, and in some cases resolve the dispute before litigation costs spiral out of control.

What Are Early Motions in Business Litigation?

A court motion is a formal request asking a judge to issue a ruling or order. Early motions are filed at the outset of a civil lawsuit, often before discovery begins. These motions are grounded in legal arguments rather than disputed facts, and they test whether a case should proceed at all, proceed in a limited form, or be paused until certain issues are resolved.

In California state and federal courts, early motion practice commonly includes:

• Motions to dismiss or demurrers
• Motions to strike improper claims or damages
• Motions to compel arbitration based on an arbitration clause
• Motions challenging venue or forum selection clauses
• Early motions for injunctive relief

Each of these tools can shape how the case proceeds and, more importantly, how much it ultimately costs.

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The Biggest Litigation Cost in Business Disputes: The Discovery Phase

For most business disputes, the discovery phase is where legal costs accelerate rapidly and often unexpectedly. Discovery requires each party to identify, collect, review, and produce large volumes of information, much of which has little to do with the core legal issues in dispute but still must be handled to comply with procedural rules.

Discovery in a business lawsuit commonly includes:

• Broad document requests spanning years of business operations
• Depositions of business owners, executives, employees, and third parties
• Electronic discovery involving emails, internal systems, and archived data
• Expert witnesses addressing damages, accounting, real estate valuation, or employment practices

The financial burden of this process can be substantial. Testimony before Congress has recognized that the cost of retaining, collecting, producing, and reviewing discovery materials can range from tens of thousands of dollars in a typical case to many millions of dollars in larger or more complex disputes. (Source: House of Representatives Subcommittee on the Constitution, Costs and Burden of Civil Discovery).

These costs are magnified in cases involving fiduciary duty claims, trade secrets, employment disputes, or complex business relationships, where discovery requests are often expansive by design. Once discovery is underway, legal fees become difficult to control, and business operations are frequently disrupted.

Early motions are designed to confront this problem head-on. By resolving threshold legal issues before discovery begins or by narrowing the scope of claims and defenses, early motion practice can significantly reduce the volume of discovery required or eliminate it altogether. For business owners focused on cost containment, controlling discovery is often the single most effective way to control overall litigation costs.

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Early Motions to Control Costs in Business Litigation

Using Demurrers and Motions to Dismiss to Reduce Exposure

In California state court, a demurrer challenges whether the named plaintiff has stated legally valid claims. In federal court, this function is served by a motion to dismiss under Rule 12(b)(6).

When successful, these motions can:

• Eliminate entire causes of action
• Narrow damages claims
• Remove improper defendants
• Clarify vague allegations that would otherwise justify broad discovery

For example, in a contract dispute, an early motion may establish that no enforceable agreement exists, ending the case before attorney fees and discovery requests accumulate.

Using Early Motions to Delay or Limit the Discovery Phase

Filing certain early motions automatically stays or limits discovery. In federal court, discovery is typically stayed while a motion to dismiss is pending. In California state court, judges often exercise discretion to delay discovery when dispositive motions are unresolved.

This matters because:

• Discovery requests drive legal fees
• Responding to discovery disrupts business operations
• Overbroad discovery increases leverage for the opposing party

An experienced business litigation attorney uses early motion practice not only to challenge claims, but to protect the client’s time, documents, and operational focus.

Using Motions to Enforce Arbitration Clauses

Many business contracts include arbitration clauses designating private dispute resolution through providers such as JAMS or the American Arbitration Association. An early motion to compel arbitration can move a dispute out of court entirely.

Potential cost benefits include:

• Streamlined discovery
• Faster resolution
• Lower court fees
• Reduced public exposure

For business owners facing a larger opponent or complex litigation, arbitration can be a cost-effective alternative to litigation when invoked early.

Using Motions for Injunctive Relief to Protect Business Operations

In disputes involving trade secrets, business partners, fiduciary duty, or employment issues, early injunctive relief can prevent irreparable harm. Examples include:

• Stopping a former employee from misusing trade secrets
• Preventing a partner from diverting company assets
• Enforcing non-solicitation or confidentiality obligations

While injunctive relief involves upfront motion practice, it can significantly reduce long-term litigation costs by stabilizing the business relationship and limiting damages exposure.

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How Early Motion Practice Creates Leverage for Early Settlement

Early motions often force the opposing party to confront weaknesses in their case. A denied motion may clarify defenses, while a granted motion may significantly reduce the value of the claims.

This strategic positioning can:

• Encourage early settlement discussions
• Improve leverage during mediation or alternative dispute resolution
• Reduce the likelihood of protracted litigation

Judges and mediators alike view well-supported early motions as a signal that a party has conducted a serious early case assessment.

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The Risk of Filing Early Motions Without Legal Counsel

While early motions can reduce litigation costs, poorly drafted or unnecessary motions can increase attorney fees and antagonize the court. Filing motions without a business litigation attorney often leads to:

• Waived defenses
• Missed procedural deadlines
• Ineffective arguments that educate the opposing party

Early motion practice is most effective when integrated into a broader litigation strategy tailored to the specific legal issues, court, and business objectives involved.

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Strategic Litigation Decisions Should Be Made Early

Early motions are not about being aggressive for the sake of litigation. They are about control. Control over costs, control over timing, and control over business risk. For business owners facing legal disputes, the earliest stages of a case often present the best opportunity to limit financial exposure.

Law Advocate Group, LLP represents businesses and individuals across Los Angeles County and Southern California in complex civil and business litigation matters, including contract disputes, employment litigation, real estate conflicts, and fiduciary duty claims. Our attorneys focus on strategic early decision-making that aligns legal tactics with business objectives.

Strategic litigation decisions made early can dramatically reduce long-term legal costs. Speak with a business litigation attorney before discovery begins to evaluate whether early motions can protect your company’s financial exposure.

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