Why the settlement figure is not your figure
In a contingency case three things come out of the settlement before you see any of it: the attorney's fee, the costs the firm advanced to run the case, and any medical liens. On a modest settlement with substantial treatment, those three together routinely exceed half the total.
None of that is hidden or improper — it is in the retainer you signed. But most people first encounter the arithmetic at the end, when the cheque is smaller than the number they had been quoting to family for a year.
The one clause worth reading twice
Whether the percentage applies to the gross settlement or to the settlement after costs are deducted. The difference is exactly the fee percentage applied to the costs.
| On a $60,000 settlement, 33⅓% fee, $3,500 costs | Fee | You keep |
|---|---|---|
| Fee on gross | $20,000 | $27,500 |
| Fee on net of costs | $18,833 | $28,667 |
$1,167 on a modest case, and it scales with the costs — on a case that went to experts and depositions, costs can run to five figures and the gap widens proportionately. Both arrangements are lawful and common; the point is to know which one you agreed to before you sign, because it is far easier to negotiate then than afterwards.
Lien reduction is the most overlooked lever
Medical providers and health plans frequently accept less than the face value of a lien, particularly where the settlement is small relative to the treatment. Every dollar taken off a lien goes to you, not to the firm. Ask your attorney directly what they have negotiated and what they tried.
What counts as a case cost
- Court filing and jury fees
- Service of process
- Medical record and billing retrieval
- Expert review and testimony
- Deposition transcripts and court reporters
- Investigators, accident reconstruction, exhibits
Ask whether costs are owed if the case is lost. Practice varies: some California firms absorb them, others bill the client. This should be explicit in the retainer, and if it is not, ask for it in writing.