Arkansas: Case Costs vs. Attorney Fees, Explained

Two deductions, two very different purposes — and the order they're applied in can genuinely change what you take home.

The attorney's fee: compensation for the work

The contingency fee is the attorney's own compensation for handling the case — calculated as a percentage of the settlement or award. It's earnings, not a reimbursement, and it's what the attorney keeps for taking on the risk and the work of the case.

Case costs: real expenses the case required

Case costs are something entirely different: actual out-of-pocket expenses the case genuinely needed. This typically includes expert witness fees, court filing fees, the cost of obtaining medical records, deposition transcripts, and similar litigation expenses. These are reimbursed, not earned — the attorney's office is simply being paid back for money it spent on the client's behalf.

Arkansas requires the agreement to spell this out

Rule of Professional Conduct 1.5(c) requires a contingent fee agreement to state the method by which the fee is determined, including how litigation costs and expenses are to be handled. This isn't optional disclosure — Arkansas courts have disciplined attorneys for fee arrangements that weren't properly documented or communicated to the client.

Why the order genuinely matters

Calculating the attorney's fee as a percentage of the full settlement before subtracting case costs produces a different net result than calculating the fee after costs have already been subtracted. On a meaningful settlement with real litigation costs, that difference in methodology can add up to a real dollar amount — worth confirming explicitly in the written fee agreement rather than assuming either approach.

Who fronts the money while the case is pending

Commonly, the attorney's office advances case costs as the litigation proceeds, with reimbursement coming out of the eventual settlement or award. The specific arrangement, including what happens to those advanced costs if the case doesn't result in any recovery, depends entirely on the individual fee agreement.

Case costs vs. attorney fees — frequently asked questions

What's the real difference between case costs and an attorney's fee in Arkansas?

The fee is the attorney's own compensation for handling the case, calculated as a percentage of the recovery. Case costs are actual out-of-pocket expenses the case required — they're reimbursed, not earned.

What typically counts as a case cost in an Arkansas personal injury claim?

Expert witness fees, court filing fees, the cost of obtaining medical records, deposition transcripts, and similar litigation expenses the attorney's office pays on the client's behalf while the case is pending.

Does Arkansas's fee rule require stating how costs and fees are handled?

Yes. Rule of Professional Conduct 1.5(c) requires a contingent fee agreement to state the method for computing the fee, including how costs will be handled.

Why does the order of deduction - fee first or costs first - matter?

Deducting the fee from the full settlement before subtracting costs produces a different net amount than calculating the fee after costs are already subtracted, so the order matters and should be spelled out clearly in the fee agreement.

Who fronts case costs while an Arkansas personal injury case is ongoing?

Commonly, the attorney's office advances these costs during the case, with reimbursement coming out of the eventual settlement or award — though the specific arrangement depends on the individual fee agreement.

This page provides general guidance only and is not legal advice. Figures are based on Arkansas Rule of Professional Conduct 1.5(c), verified per our methodology. Confirm the exact terms of a specific fee agreement with a licensed Arkansas attorney before acting.