Why does the CP MSA call their expense line items "Charges"?
Fee—what an attorney charges for their work product/performing the functions of an attorney
Cost—Expenses incurred by the attorney while working on behalf of their client that they wouldn’t otherwise have to pay. Obvious ones would include gathering
In Michigan, the fee vs. cost wording is relevant as attorneys are limited to a maximum of 1/3 fee on a contingency case. That said, attorneys do not want to label the above expenses as “fees” since that might give the impression that they are trying to exceed the maximum allowed. At the end of the day, you can justify your expenses with invoices, receipts, etc., regardless of how they’re labeled, but better to avoid any potential confusion or grievances if it all possible.
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