Personal injury firms must track every client advance cost to its specific case. If a case settles without recovery, those expenses become unrecoverable losses. Contingency fees vary widely, from 33.33% to 40% or lower in class actions, so confirm the terms before you spend.
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So most importantly, you're tracking the client advance costs or any costs involved in that case or matter. They should be tagged to the matter because when the case does settle, if the law firm doesn't recoup all those expenses, guess where those expenses land? They land in the law firm's expense category. It ends up being a billable expense unrecovered if it doesn't get billed back at the time of winning the matter. Because if they lose the matter too, I mean, then it all becomes their expense. You want to talk to the lawyer if you've got this— if you've got— just got this client, you want to talk to the lawyer and say, hey, Mr. or Ms. Attorney, I need to see what's the paperwork that you give your clients so I understand exactly what you're agreeing to. Because sometimes a lot of them we've worked with, the percentages are different. It's not just always standard 33.33%. It's not. Sometimes 40%, sometimes it's less. You might be looking at class actions. More times it's less, I'll be honest with