This study, titled “The Economic Costs of Litigation: A Case Study on the State of Goa,” examines the financial implications of litigation on litigants and evaluates the effectiveness of alternative dispute resolution (ADR) mechanisms. The research is based on a dataset comprising 300 cases from selected District Courts of North and South Goa, spanning the years 2002 to 2017. Using both primary and secondary data, the study adopts a mixed-method approach incorporating quantitative and qualitative analysis.

The findings reveal that litigation imposes a significant financial burden on litigants, with the average cost incurred by a Petitioner being substantial. In a majority of cases, the cost of litigation exceeds the damages awarded, resulting in a net financial loss for the Petitioner. The study further analyzes appellate behavior and finds that higher litigation costs tend to discourage appeals, while dissatisfaction with lower court judgments motivates litigants to pursue higher judicial remedies.

The research also highlights the role of ADR as a cost-effective and time-efficient alternative to traditional litigation. Although ADR mechanisms demonstrate advantages in reducing time and cost, their adoption remains limited, with most litigants in Goa continuing to prefer conventional court processes.