Can Personal Injury Attorneys Recover the Cost of Investigators and Process Servers? Here’s What California Law Allows

In personal injury litigation, cases often stall not because of legal issues—but because the defendant simply cannot be found or is actively avoiding contact. When that happens, attorneys rely on investigators and skilled process servers to locate the defendant, complete service, and apply the pressure needed to bring the insurance carrier back to the negotiating table.

A common question among PI firms is: "Can we recover the cost of hiring a private investigator or process server?"

The answer: Yes—under most litigation circumstances. Below is a clear breakdown of when these costs are recoverable, how courts treat them, and why these services are considered essential to advancing a PI case.

1. After a Lawsuit Is Filed, Cost Recovery Becomes Available

Once a complaint has been filed, investigators and process servers fall under California’s recoverable litigation expenses.

California Code of Civil Procedure §1033.5(a) explicitly allows recovery of:

• (4) Service of process fees

• (2) Investigator expenses that are “reasonably necessary to the conduct of litigation”

This is the legal foundation PI attorneys rely on.

Courts routinely approve costs for:

• Multiple service attempts

• Skip tracing required to locate the defendant

• Investigative work that makes substituted service possible

• Surveillance or stakeouts when they are reasonably tied to service

• Due diligence declarations

• Documentation needed for motions for alternative service

https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1033.5&lawCode=CCP

These expenses become part of the Memorandum of Costs, recoverable if the plaintiff prevails.

2. Investigator and Service Fees in Default Judgments

When a defendant is served but fails to respond, the attorney proceeds with a default judgment. This is one of the most straightforward scenarios for cost recovery.

Courts almost always approve:

• Process server fees

• Skip trace charges

• Service-related investigative work

• Due diligence reports and declarations

• Reasonable surveillance or attempts

• Documentation required to support substituted service

These costs become part of the default judgment and may be collected from the defendant.

3. Recoverability After Trial or Arbitration

If the case proceeds to trial and the plaintiff wins, investigative and process-serving fees become part of the prevailing party costs, which the defendant is responsible for paying.

Recoverable costs at this stage include:

• Standard service of process

• Difficult service requiring investigation

• Skip tracing or witness location

• Documentation of attempts

• Substitute service efforts

The key is that these actions must be reasonably necessary to the litigation—and properly documented.

4. When the Case Settles (The Most Common Outcome)

Even though most PI cases settle, attorneys can still recover investigative and service costs—just not from the insurance carrier directly.

Instead, California contingency agreements allow attorneys to treat these expenses as case costs, meaning:

• The attorney pays the investigator during case handling

• The cost is deducted from the client’s gross settlement

• The attorney’s overhead remains unaffected

For PI firms, this is a crucial point:

Using an investigator does not reduce the attorney’s profit—it simply moves the case forward.

This is one of the reasons PI litigators regularly use skip tracing, surveillance, and high-difficulty service. The firm gains leverage without incurring financial loss.

5. Why Documentation Matters for Cost Recovery

Courts and insurers rely heavily on documentation. A professional investigator provides:

• Time-stamped attempt logs

• Photographs and video when applicable

• Complete due diligence declarations

• Narrative investigative reports

• Compliance with CCP service rules

This documentation not only supports cost recovery but also strengthens substitute service motions, trial preparation, and overall negotiation leverage.

6. The Strategic Advantage for PI Firms

Hard-to-serve defendants often halt a PI case at the most critical phase—when the attorney needs to file, serve, and move into litigation.

A skilled investigator helps PI firms:

• Overcome access barriers (gated homes, secure buildings, restricted communities)

• Locate defendants who have moved, concealed their address, or are actively avoiding service

• Trigger litigation deadlines that force insurers to take the case seriously

• Avoid dismissal for failure to serve

• Strengthen settlement positioning by showing the defense the plaintiff is prepared

Serving the defendant is frequently the turning point in a PI case.

7. The Exception: Pre-Litigation Costs

Before a lawsuit is filed, the rules are different.

Pre-litigation investigative work is generally not recoverable from the insurance company or opposing party.

This includes:

• Initial skip tracing

• Surveillance before filing

• Attempts at voluntary service

• Pre-litigation fieldwork

Because there is no active case yet, courts cannot award costs.

However…

Even though these expenses aren’t recoverable, they often unlock the entire case by allowing the attorney to:

• Confirm identity and address

• Successfully serve once the lawsuit is filed

• Push the claim into litigation

• Force insurers to reevaluate a lowball offer

This makes pre-litigation investigative work strategically valuable, even if not reimbursed.

Final Takeaway

✔ Attorney recovery of investigator and process-serving costs is available in most litigation scenarios.

✔ Costs are routinely awarded in defaults and judgments.

✔ Costs become part of prevailing party fees in trial wins.

✔ Costs are deducted from settlements without affecting attorney overhead.

✔ Pre-litigation costs are the exception—but often critical for case momentum.

Partnering with a licensed Private Investigator who understands PI litigation gives firms the ability to move stalled cases forward, protect deadlines, increase negotiation leverage, and position clients for better outcomes.

If your case has halted because the defendant is missing, evading, or unreachable, we can help you get it moving again.

info@rushintel.com 626-385-8662