In which situation can costs be deducted from the contingency fee?

In the context of contingency fees, costs can indeed be deducted from the fee, but this typically requires the client's agreement. When a lawyer enters into a contingency fee arrangement, it means that the fee is contingent upon the successful outcome of the case. Although the lawyer is entitled to recover costs associated with the case, such as filing fees, expert witness fees, and other litigation expenses, doing so without the client's consent could be seen as unethical or a breach of the lawyer-client relationship.

Obtaining the client's agreement ensures transparency and maintains trust. Clients should clearly understand what costs will be deducted and how this affects their potential recovery. This is part of the duty of communication lawyers have with their clients and is essential for informed consent.

Consequently, in a contingency fee agreement, costs can only be deducted when the client has agreed to those deductions, making this option the best and most ethically sound choice.