Texas: Case Costs vs. Attorney Fees, Fully Explained

Two deductions, two very different purposes — plus a third claim on the recovery that hospital liens can add in Texas specifically.

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 claim unique to Texas: the hospital lien

Texas Property Code Chapter 55 gives a hospital a direct lien on an injury settlement when the patient was admitted within 72 hours of the accident. This is a separate claim on the recovery entirely — distinct from both the attorney's own fee and the ordinary case costs the law firm advances, and it has to be resolved out of the settlement before the client sees their final net.

Health insurer reimbursement rights, too

Beyond a hospital lien, health insurers often carry their own reimbursement rights against a Texas settlement. Like the hospital lien, this sits separately from both the attorney's fee and ordinary case costs, and typically gets negotiated and resolved as part of finalizing the recovery.

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. Liens and reimbursement claims are handled separately, often negotiated down as part of the overall settlement process, so it's worth confirming directly with a specific attorney how all of these pieces fit together in a given case.

Case costs vs. attorney fees — frequently asked questions

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

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 a Texas 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.

What is a Texas hospital lien, and how is it different from an attorney fee or case cost?

Under Property Code Chapter 55, a hospital can place a lien directly on an injury settlement when the patient was admitted within 72 hours of the accident — this is a separate claim on the recovery, distinct from both the attorney's fee and ordinary case costs.

Do health insurers have similar reimbursement rights in a Texas settlement?

Often yes — health insurers frequently have their own reimbursement rights against a settlement, which, like a hospital lien, sit separately from the attorney's fee and case costs and get resolved as part of finalizing the recovery.

Who fronts case costs while a Texas 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 Texas Property Code Chapter 55 and Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct, verified per our methodology. Confirm the exact terms of a specific fee agreement with a licensed Texas attorney before acting.