Costs vs Fees
Attorney fees and litigation costs are fundamentally different. Fees are the attorney's professional charges — contingent on winning under a no win no fee agreement. Costs are out-of-pocket expenses (filing fees, experts, depositions) that may or may not be your responsibility if the case fails. This distinction is the single most important financial detail most clients overlook.
What Are Attorney Fees?
Direct Answer: Attorney fees are what the lawyer charges for legal services (the contingency percentage). Costs are out-of-pocket litigation expenses — court filing fees, expert witness fees, deposition transcripts, medical records. In most contingency cases, costs are advanced by the firm and deducted from the recovery, separate from the fee.
Attorney fees (also called legal fees or professional fees) compensate the lawyer for their time, expertise, judgment, and labour. In a contingency fee arrangement, these fees are entirely contingent on a successful outcome — if you lose, the professional fee is normally not payable, but expenses and court-awarded costs may still apply. The fee is often 33⅓% to 40% of the recovery, calculated as a percentage of either the gross or net settlement amount.
Litigation Costs Explained
Costs (also called expenses or disbursements) are the out-of-pocket charges incurred in the prosecution of your case. They are separate from the attorney's professional fees and can be substantial:
| Cost Type | Typical Range |
|---|---|
| Court filing fees | $200–$500+ |
| Expert witness fees | $2,000–$15,000+ per expert |
| Deposition costs | $1,000–$5,000+ per deposition |
| Medical record requests | $50–$500 |
| Process server fees | $50–$200 |
| Court reporter fees | $500–$3,000+ per day |
| Travel expenses | Variable |
Impact on Your Recovery
How costs interact with the fee calculation has a direct impact on your take-home amount. Consider a $200,000 settlement with $20,000 in costs and a 33⅓% fee:
| Item | Gross Method | Net Method |
|---|---|---|
| Settlement | $200,000 | $200,000 |
| Costs | $20,000 | $20,000 |
| Attorney Fee | $66,667 (33⅓% of $200K) | $60,000 (33⅓% of $180K) |
| Client Receives | $113,333 | $120,000 |
The $6,667 difference illustrates why the gross vs net distinction matters. Always confirm which method your agreement uses.
What Happens to Costs If You Lose?
This is the question most clients forget to ask. There are two models:
- "True" no win no fee: The attorney absorbs all costs if the case is unsuccessful. The agreement should still state whether any external or court-awarded costs remain payable.
- Costs-regardless: You must reimburse the attorney's advanced costs even if the case loses. This means you could owe thousands of dollars despite receiving no recovery.
Frequently Asked Questions
You May Also Be Interested In
How Contingency Fees Work
Step-by-step from intake to settlement
Read moreContingency Fee Agreements
What your retainer should say about costs
Read moreAre Contingency Fees Regulated?
State bar cost and fee rules
Read moreAlternative Fee Arrangements
Hybrid and flat fee alternatives
Read moreWhat Is a Contingency Fee?
Foundational explainer
Read moreWhere this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.
Sources for this page
Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 2 August 2026.
- ABA Model Rule 1.5 (Fees)
Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.
- Federal Rule of Civil Procedure 54(d) (costs to the prevailing party)
A losing plaintiff may be ordered to pay the defendant's taxable costs. There is no US equivalent of QOCS.
- Federal Rule of Civil Procedure 68 (offer of judgment)
- Cornell LII — contingency fee
Who wrote and checked this page
- Written and published by
- Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
- Legal review
- This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
- Review dates
- Last reviewed 2 August 2026. Next review due 2 February 2027.
Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.