The contingency model means you do not pay an attorney’s fee out of pocket. But a settlement has more moving parts than one percentage. There are attorney fees and there are case costs — and confusing the two is how clients get surprised at disbursement. This guide separates them cleanly, shows the order they come out of your recovery, and gives you the exact questions to ask so the math holds no surprises.
The contingency fee
The contingency fee is the attorney’s payment for legal work: a percentage of your recovery, commonly in the one-third range and sometimes rising if the case is filed or tried. You pay it only if you recover. That is the “no win, no fee” promise. We cover the percentages and ranges in contingency fee explained and what percentage attorneys take. The fee is the part most people focus on — but it is only half the money story.
Case costs are separate
Case costs are the out-of-pocket expenses of building your case: court filing fees, medical-record charges, expert and accident-reconstruction fees, deposition transcripts, and postage. In rail cases, expert costs can be substantial. Most contingency firms advance these and recoup them from the settlement. Costs are not part of the fee percentage — they are reimbursed on top of it. The critical question is whether they come out before or after the fee is calculated, which changes your net.
What comes out first
Order matters. If the fee is calculated on the gross and then costs are deducted, you net less than if costs are deducted first and the fee is calculated on the remainder. Both arrangements are legal; the agreement controls. Read the fee agreement for the exact sequence, and model both versions in the fee calculator so you can see the dollar difference rather than guess.
What if you lose?
In a true contingency arrangement you owe no attorney fee if the case loses. Case costs are different: some firms absorb advanced costs on a loss, others contractually seek reimbursement. This single point varies firm to firm and is worth confirming in writing. A firm that eats costs on a loss is taking on more risk — reasonable people choose differently, but you should know which deal you are signing.
Questions that prevent surprises
Before you sign, ask: What is the fee percentage, and does it change if you file or try the case? Are case costs separate from the fee? Are costs deducted before or after the fee is calculated? Do I owe costs if we lose? Will I get an itemized accounting at the end? Get the answers in writing. These five questions are part of a complete vetting, and they separate a transparent attorney from an evasive one.
Frequently asked questions
What's the difference between attorney fees and case costs?
The attorney fee is the contingency percentage paid for legal work. Case costs are out-of-pocket expenses like filing fees, expert witnesses, and records. Costs are reimbursed separately, on top of the fee, not included in the percentage.
Do case costs come out before or after the attorney's fee?
It depends on the agreement. If the fee is calculated on the gross and costs deducted after, you net less than if costs come out first. Both are legal, so read the fee agreement carefully and model both in a calculator.
Do I owe anything if I lose the case?
In a true contingency arrangement, you owe no attorney fee if you lose. Case costs vary: some firms absorb them on a loss, others seek reimbursement. Confirm this point in writing before signing.
