QUESTION
In contingency contract, who is responsible for defense costs if case is dismissed without prejudice?
Asked on Aug 14th, 2017 on Contracts - California
More details to this question:
After depositions, case was dismissed without prejudice per plaintiff's lawyers advice due to high anticipated experts costs, etc. Since it's a contingency agreement, is the plaintiff's lawyer now responsible for paying the defense costs incurred so far?
1 ANSWER
No. Unless California law is different, attorneys are not allowed to pay their clients' court costs, as this is viewed as promoting litigation. The contingency only applies to legal fees, not expenses such as deposition costs, expert fees, etc.
Answered on Aug 15th, 2017 at 8:29 AM