What is a key consideration in determining fees in contingent fee agreements?

In contingent fee agreements, the key consideration revolves around whether the fees are deducted before or after the expenses incurred in the case are subtracted. This distinction is crucial because it can significantly affect the total amount the client ultimately receives if the attorney prevails in the case.

When the fee is calculated after expenses are deducted, the client's total recovery is decreased by the costs of the case, which could lead to a lower net amount. Conversely, if the fee is taken out before expenses, the attorney's take is based on the gross recovery, which can ensure that the attorney receives a larger fee but may not be in the client's best interest if they are left with less after expenses.

This specific aspect of how fees are structured is of utmost importance and is often highlighted in professional responsibility guidelines and case law regarding attorney conduct. Understanding this will help clients make informed decisions regarding their legal representation. Other considerations, such as the number of clients an attorney has, their office location, or demographic information, may play roles in different contexts but are not as directly influential in the nuances of contingent fee agreements compared to the timing of when fees are assessed in relation to incurred costs.