Are expenses taken out before or after the attorney’s fee in Georgia?

· 2 min read

There is no fixed order set by Georgia law; the sequence is whatever the fee agreement provides. Whether case expenses are subtracted before or after the attorney’s percentage is calculated changes the client’s net amount, so the answer lives in the contract rather than in a statute.

Why the order changes the math

The same recovery and the same percentage can leave the client with different amounts depending on sequence:

  • Fee first, then expenses: the percentage is applied to the gross recovery, and expenses are deducted from what remains. This generally produces a larger fee.
  • Expenses first, then fee: expenses are subtracted from the recovery before the percentage is applied to the smaller balance. This generally leaves the client with more.

The gap between the two methods widens as expenses grow, which means the order matters most in heavily litigated cases where expert and deposition costs are large. A client comparing two fee agreements with identical percentages still needs to know the order to compare the real cost.

What the agreement should spell out

Because Georgia leaves this to contract, a clear fee agreement states three things: the base the percentage applies to (gross or net of expenses), which expenses are charged, and the order in which the fee, expenses, and any medical liens come out of the proceeds. If those points are vague, the ambiguity itself can lead to a dispute at disbursement. The agreement is the controlling source, and it should be readable on this point before signing.

The reasonableness requirement of Rule 1.5 of the Georgia Rules of Professional Conduct still governs the overall fee, so an arrangement that produces an unreasonable result can be challenged even if the order is stated.

Checking it at settlement

At closing, the client should receive an itemized statement showing the gross recovery, the fee, each expense, and each lien, ending in the net. Running the numbers in the order the agreement specifies, and confirming the statement matches, is the practical way to verify that expenses and the fee were applied as agreed.

The bottom line

In Georgia, expenses can be taken out before or after the attorney’s fee; the fee agreement decides. Because the order shifts the client’s net, the contract should state plainly whether the percentage is figured on the gross recovery or on the amount after expenses, and the closing statement should reflect that same sequence.

This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.

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