“Should We Just Let It Go?”: How to Decide If a Contract Lawsuit Is Worth Filing

By Jesse David Eisenberg, Esq. | JDE Law Firm, PLLC

Every day, smart business owners ask me the same question:

“Is it really worth suing them?”

It’s a fair concern. You don’t want to throw good money after bad. But walking away without understanding your options can be just as costly — if not more.

This post breaks down the key legal and business factors that determine whether it’s worth pursuing a contract lawsuit in New York or New Jersey.

Start With This Question:

Can they pay — and will they have to?

If the answer is “probably,” then you may have a recoverable claim. If the answer is “definitely not,” you may still have strategic reasons to file — like protecting your brand, recovering partial funds, or sending a message to other vendors or partners.

5 Factors That Make a Lawsuit Worth Filing

• Clear liability: Signed contract, performed services, and no valid excuse for non-payment.
• Significant amount at stake: Generally, claims over $10,000–$25,000 make litigation more cost-effective.
• Solvent defendant: The target has assets, income, or insurance coverage.
• Contract includes legal fee recovery: A good clause can shift the cost of litigation back to them.
• Enforceable jurisdiction: You’re not chasing someone across the country in a court that won’t honor your claim.

When to Pause or Rethink

• Defendant is judgment-proof: No assets or in bankruptcy.
• You contributed to the breach: Shared liability can weaken your position.
• The legal costs outweigh recovery: Particularly true for small-dollar disputes without a fee clause.

Don’t Just Guess — Calculate

We help clients run a litigation ROI analysis — considering projected damages, defense arguments, collection risk, and legal costs.

This approach helps you make a business decision — not an emotional one.

What Happens If You Do Nothing?

• Statute of limitations may expire — often 3 to 6 years in NY/NJ
• Debtor may transfer assets to evade judgment
• Leverage disappears — silence looks like weakness in business disputes

Weigh It With the Right Partner

You don’t have to file a lawsuit tomorrow. But you do need to know your window — and your chances.

Let’s assess your claim and help you decide — legally, financially, and strategically.

📞 Schedule a strategy call with JDE Law Firm, PLLC:
www.jdelaw.nyc | NY: 718-966-0877 | NJ: 732-490-7120

My business is to protect your business.