Attorney Fees vs Case Costs - Difference and Comparison

Attorney fees are like wages; they are a charge for the time and labor of attorneys and their staff, such as paralegals. Fees do not include certain out-of-pocket costs (case costs) that are incurred as part of a legal case. Case costs are expenses on third parties — i.e., people other than the lawyers.

Comparison chart

Attorney Fees versus Case Costs comparison chart
Edit this comparison chartAttorney FeesCase Costs
Payment forTime and labor of lawyers and their staffExpenses incurred by the lawyers during the case, such as court filing fees, expert testimony, photocopying costs, mailing and postage
Payable in contingency fee arrangementsOnly if the client wins the case and gets a settlementUsually the client is required to pay for case costs regardless of the outcome of the case.
The scales of justice

Examples

Attorney fees are straightforward: they are paid to the lawyer or law firm for the time of their staff. Usually this is based on an hourly fee. Sometimes lawyers agree to a fixed fee when the cases are cookie-cutter. For example, drafting a will takes roughly the same amount of time and lawyers can re-use their templates. Some lawyers also take up cases based on a contingency fee, when they only get paid if they win a settlement for the client.

Examples of case costs that are different from attorney fees include:

  • Reimbursing experts for depositions, including their time, hotel stay and transportation
  • Bail and bonds
  • Court filing fees
  • Postage and courier fees
  • Costs for photocopying documents

For civil cases, costs can range anywhere from a couple of hundred dollars in a case where no lawsuit is filed, to tens of thousand dollars for cases that must be brought before a jury.

Often these costs are paid by lawyers during the course of the case and later reimbursed by the client.

Contingency Fees

Some lawyers work on a contingent basis, usually when they are suing for damages. In such cases, the agreement is that the attorney fees is payable only if the client wins the lawsuit. The fees range from 25% to 40% of the settlement amount. However, whether this covers case costs or not depends upon the contract signed by the client when they hire the lawyer. Usually the client is required to reimburse the attorney for case costs regardless if the outcome is successful or not.

References

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"Attorney Fees vs Case Costs." Diffen.com. Diffen LLC, n.d. Web. 22 Jun 2022. < >

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