The litigation cost management system (FIG. 1) provides modules for outlining the process of litigation (12), establishing pricing variables to each step of the litigation (14), all at the outset of the case. A case budget (16) is then generated and the case is managed by outside counsel based upon the agreed upon budget and process. When exceptions occur during the course of litigation, outside counsel electronically submits requests for new work to corporate counsel, which in turn can be approved or denied. Point and click billing allows immediate simplistic invoicing which requires no review by corporate counsel as the work performed has already been approved. Statistical reporting provides corporate counsel with real time analysis of all the cases that are in the system.