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.
A third piece in smaller cases
For a qualifying case under $10,000, North Carolina adds a genuinely distinct third component: a court-awarded attorney fee under N.C. Gen. Stat. § 6-21.1, paid by the losing defendant rather than coming out of the client's recovery at all. This is neither the contingency fee nor a case cost — it's a separate amount a judge may award at their discretion, on top of both.
Whether costs come back depends on the agreement
Whether a client has to reimburse advanced case costs if the case doesn't result in any recovery isn't a fixed rule — it depends entirely on the specific fee agreement. Some arrangements have the attorney absorb those costs if there's no recovery at all; others may handle it differently. This is worth confirming explicitly before signing a retainer agreement.
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 depends entirely on the individual fee agreement.