If you’ve been injured in a car wreck, truck collision, or any other accident in San Antonio or anywhere in Texas, you’ve probably heard that personal injury attorneys work on a “contingency fee” basis — meaning you don’t pay attorney fees upfront. But what about the other costs involved in building your case? Filing fees, medical records, expert reports — someone has to pay for those.
These are called case expenses (sometimes called “litigation costs”), and they are separate from the attorney’s contingency fee. Understanding how case expenses work — and who is responsible for them — can prevent surprises when your case settles or goes to trial.
Quick Answer
Case expenses are the out-of-pocket costs required to investigate, build, and resolve your personal injury claim.They are separate from and in addition to the attorney’s contingency fee.
In most Texas personal injury cases handled on contingency, the law firm advances (fronts) these costs on the client’s behalf. When the case resolves — through settlement, trial verdict, or arbitration — the firm is reimbursed for those expenses from the recovery, along with the attorney fee.
If the case does not result in a recovery, the client typically owes nothing — but this depends entirely on the terms of your fee agreement, so it is important to read it carefully and ask questions before signing.
Case Expenses vs. Attorney Fees: What’s the Difference?
Many clients understandably lump “costs” and “fees” together. They are two distinct categories, and the distinction matters because it directly affects your net recovery — the amount you actually take home.
| Attorney Fees | Case Expenses | |
|---|---|---|
| What it covers | The lawyer’s compensation for legal work | Out-of-pocket costs to build and present your case |
| How it’s calculated | Percentage of the gross recovery (contingency fee) | Dollar-for-dollar reimbursement of actual costs incurred |
| When it’s paid | Deducted from settlement or verdict proceeds | Reimbursed from settlement or verdict proceeds |
| If there’s no recovery | Typically nothing owed (contingency basis) | Depends on your fee agreement — read closely |
Your fee agreement (also called a contingency fee contract or retainer agreement) should clearly spell out how both are handled. Under Texas law, lawyers are required to put contingency fee agreements in writing.
Common Case Expenses in Texas Personal Injury Cases
Not every case incurs the same costs. A straightforward fender-bender that settles quickly through the at-fault driver’s insurance will have far fewer expenses than a contested commercial truck wreck that goes to trial. Here are the most common categories:
Investigation and Evidence Gathering
- Police report fees — Obtaining the official crash report (CR-3) from the investigating agency.
- Medical records and billing records — Hospitals, ERs, imaging centers, physical therapy clinics, and specialists all charge per-page or flat fees for records.
- Scene photographs and documentation — If the firm hires a photographer or investigator to document the crash scene, road conditions, or vehicle damage.
- Private investigator fees — Sometimes used to locate witnesses, verify facts, or conduct surveillance in disputed-liability cases.
Medical and Technical Experts
- Expert witness fees — Physicians, accident reconstructionists, biomechanical engineers, life-care planners, vocational rehabilitation experts, and economists who review your case, prepare reports, and potentially testify. These are often the single largest expense category.
- Independent medical examinations (IMEs) — If your attorney retains a physician to evaluate your injuries and provide a causation opinion.
Litigation and Court Costs
- Court filing fees — Required when a lawsuit is filed in state or federal court. In Bexar County, filing fees vary by court and case type.
- Service of process — Paying a process server or constable to serve the defendant with the lawsuit.
- Deposition costs — Court reporter fees, videographer fees, and transcript costs for depositions of parties, witnesses, and experts.
- Mediation fees — The mediator’s fee, which is typically split between the parties but your share is still a case expense.
- Trial exhibits and demonstratives — Enlarged photographs, medical illustrations, PowerPoint presentations, and other visual aids used at trial.
Administrative and Miscellaneous
- Postage and courier charges — Certified mail for demand letters, medical record requests, and legal filings.
- Travel expenses — Mileage, lodging, or airfare if depositions or inspections occur outside of San Antonio.
- Lien resolution costs — In some cases, third-party services that negotiate Medicare, Medicaid, or ERISA liens charge a fee.
How Case Expenses Are Handled: The Advance-and-Reimburse Model
Under the Texas Disciplinary Rules of Professional Conduct, a lawyer may advance court costs and litigation expenses on behalf of a client. This is how most Texas personal injury firms operate, and it is one of the key benefits of the contingency fee system — you don’t have to come out of pocket while your case is being built.
Here is how it typically works, step by step:
- You sign a fee agreement. The contract authorizes the firm to advance case expenses on your behalf and explains how they will be repaid.
- The firm pays costs as they arise. Filing fees, records requests, expert retainers — the firm covers these during the life of the case.
- The case resolves. When a settlement is reached or a verdict is obtained, the firm prepares a written settlement statement (also called a closing or disbursement statement).
- Expenses are deducted. The settlement statement itemizes all case expenses. These are reimbursed to the firm from the gross recovery, along with the attorney fee.
- You receive the remainder. Your net recovery is what’s left after the attorney fee and case expenses are subtracted (along with any outstanding medical liens or subrogation claims).
Settlement Math: A Simplified Example
Assume a $100,000 settlement with a 33.33% contingency fee and $8,000 in case expenses:
| Line Item | Amount |
|---|---|
| Gross settlement | $100,000 |
| Attorney fee (33.33%) | –$33,330 |
| Case expenses | –$8,000 |
| Net to client (before liens) | $58,670 |
This is a simplified illustration. Actual recoveries will vary based on the fee percentage, expenses incurred, and any outstanding liens or subrogation obligations. No specific result is promised or implied.
Are Expenses Deducted Before or After the Attorney Fee?
This is one of the most important — and most overlooked — details in any fee agreement. There are two common methods:
- Expenses deducted before the fee is calculated. The attorney fee is a percentage of the recovery after expenses are subtracted. This usually results in a slightly lower attorney fee and a slightly higher net to the client.
- Expenses deducted after the fee is calculated. The attorney fee is a percentage of the gross recovery, and expenses come out of the client’s share.
Both approaches are used in Texas, and both are permissible. The key is that the method must be clearly stated in your written fee agreement. If you aren’t sure which method your contract uses, ask your attorney to walk you through a hypothetical settlement statement before you sign.
What Happens to Case Expenses If My Case Doesn’t Settle?
This is one of the first questions clients should ask — and one that many forget to. The answer depends entirely on what your fee agreement says. There are generally two approaches:
- Client is not responsible. Some fee agreements state that if there is no recovery, the client owes nothing — including case expenses. The firm absorbs the loss.
- Client remains responsible. Other agreements provide that the client is ultimately responsible for expenses regardless of outcome, even though the firm advanced them.
Neither approach is inherently right or wrong, but you should know which one applies to your case before the firm starts spending money on your behalf. Read the contract and ask directly.
How to Keep Case Expenses Under Control
You have a right to understand what’s being spent on your case. Here are practical steps:
- Read your fee agreement carefully. Understand what qualifies as a case expense, how expenses are deducted, and what happens if the case is unsuccessful.
- Ask for periodic expense updates. A good firm will track expenses and provide updates if you ask.
- Discuss major expenses before they’re incurred. Retaining an expert witness or hiring an accident reconstructionist can cost thousands of dollars. You should be part of that conversation.
- Understand which expenses are necessary vs. optional. Some costs are unavoidable (filing fees, medical records). Others are strategic decisions (hiring a life-care planner, retaining a vocational expert). Your attorney should be able to explain why each major expense is worth the investment.
Attorney Insight
Case expenses are an investment in the strength of your case. In my practice, I’ve seen cases where spending money on the right expert — an accident reconstructionist who can prove the other driver ran a red light, or a life-care planner who can document future medical needs — dramatically increased the client’s recovery. On the flip side, I’ve also seen situations where a lean approach (resolving a clear-liability case before filing suit) kept expenses low and maximized the client’s net recovery.
The goal is always to make strategic decisions about expenses that serve the client’s best interest — not to run up costs unnecessarily. If you’re working with a personal injury attorney, don’t hesitate to ask about the expenses being incurred, why they’re necessary, and how they’ll affect your bottom line.
Frequently Asked Questions
Do I have to pay case expenses upfront? In most Texas contingency fee arrangements, no. The law firm advances expenses and is reimbursed from the settlement or verdict.
Are case expenses the same as attorney fees? No. Attorney fees are the lawyer’s compensation (a percentage of the recovery). Case expenses are the actual out-of-pocket costs of building and presenting your case. Both are typically deducted from the gross recovery.
Can case expenses be negotiated? Some expenses are fixed (filing fees, records fees), but strategic expenses like expert retention can be discussed with your attorney. You should feel comfortable asking why a particular expense is necessary.
What is a settlement statement? A settlement statement (or disbursement sheet) is a written breakdown showing the gross recovery, attorney fees, case expenses, any lien payments, and the net amount paid to you. Texas attorneys are required to provide this.
What if I think the expenses on my case are too high? Ask your attorney to walk through each expense and explain its purpose. You have a right to understand what was spent and why. If you have concerns, raise them as early as possible.
Next Steps
If you’ve been injured in a car accident, truck wreck, or other incident in San Antonio or anywhere in Texas and want to understand how a personal injury case works — including how fees and expenses are handled — contact us for a free consultation. We’ll walk you through the process, answer your questions about costs, and explain exactly what to expect.
Ryan Orsatti Law 4634 De Zavala Rd, San Antonio, TX 78249 Phone: 210-525-1200
This blog is for informational purposes only, not legal advice. Reading it does not create an attorney-client relationship. Past results do not guarantee future results.