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 genuine Washington nuance: interest on advanced costs
A Washington State Bar ethics opinion confirms that a lawyer may provide, in the written contingency fee agreement at the outset, that advanced litigation costs accrue interest after a stated period — as long as the rate is reasonable under RPC 1.5 and non-usurious. This is a detail worth understanding before signing, since it affects what's deducted from a final recovery beyond the base cost figures themselves.
A cost specific to pursuing an unreasonable insurer
When a claim involves pursuing a separate remedy under the Insurance Fair Conduct Act — documenting that an insurer acted unreasonably, beyond simply proving the underlying injury — that additional work can itself add real cost to the case. Building that kind of claim often requires its own evidence and expert input distinct from what the injury claim alone would need.
Who fronts the money while the case is pending
Commonly, the attorney's office advances case costs as the litigation proceeds, including any interest terms set out in the fee agreement, with reimbursement coming out of the eventual settlement or award. The specific arrangement depends entirely on the individual fee agreement.