And that assumes that the lawyer isn't handling the case on contingency.
Generally, the reason people overestimate the costs of trials is because standard contingency fees are 30%-40% of judgements.
Reminds me of that famous poem "First they came for the ..."
It's somewhat hard to square with "litigious culture" criticisms of some parts of the country. But the details matter. Filing & defending in small-claims court is pretty cheap without a lawyer (and even with one is "only" in the small thousands) and person-vs-person cases won't be too terrible compared to companies-vs-individuals...
Isn't it worse than that -- more like 'we might not win, but you're probably boned either way'? I may be wrong but I have the impression that it's relatively rare to be awarded full costs, and anyway you'll have to pay your lawyers up front.