Is the contingency fee calculated on my gross recovery or after expenses are deducted in Georgia?
It depends entirely on what the fee agreement says, because Georgia does not impose a single method by statute. The two common approaches, figuring the fee on the gross recovery or on the amount left after case expenses are subtracted, produce different net amounts for the client, so the wording of the contract controls the outcome.
The two methods and why they matter ¶
The same percentage applied to a different base yields a different fee:
- Gross-recovery method: the percentage is applied to the full settlement or judgment first, and case expenses are deducted afterward.
- Net-after-expenses method: case expenses are subtracted first, and the percentage is applied to the smaller remaining amount.
Because expenses come out before the percentage in the second method, that approach generally leaves the client with more, while the gross method generally yields a larger fee for the lawyer on the same recovery. The size of the difference grows with the size of the expenses, which is why this single drafting choice can noticeably change the client’s net.
Why the agreement is the answer ¶
Georgia law leaves this term to the contract between lawyer and client. A clear fee agreement states the base explicitly, whether the fee is computed before or after expenses, so the client can see how the number is built. If the agreement is silent or ambiguous on this point, that ambiguity itself can become a source of dispute, which is a strong reason to confirm the method in writing before signing.
The reasonableness backstop still applies. Under Rule 1.5 of the Georgia Rules of Professional Conduct, the overall fee must be reasonable, and the rule contemplates that contingency terms, including how expenses are handled, be set out in a writing the client can understand.
A practical way to read it ¶
To know the real cost, the client should look past the headline percentage and ask three things the agreement should answer: what base the percentage is applied to, which expenses are charged, and in what order the fee, expenses, and any liens come out. Running those numbers on a sample recovery makes the practical effect concrete.
The bottom line ¶
In Georgia the fee can be calculated on the gross recovery or on the amount after expenses; the controlling factor is the fee agreement, not a fixed rule. Because the two methods leave the client with different net amounts, the base for the percentage should be stated plainly in writing and confirmed before the representation begins.
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.