Read a Closing Statement With Fees and Expenses Shown Separately

At the end of a Pennsylvania contingent fee matter, read the written outcome accounting with fees and expenses identified separately. The task is to understand how the stated remittance was derived, not to assume that a displayed total proves every underlying charge is correct.

In this article

Pennsylvania Rule 1.5(c) requires a written statement at the conclusion of a contingent fee matter, explaining the outcome and, if there is a recovery, the client’s remittance and its calculation. Use that statement together with the actual agreement and applicable order.

Create a document-to-entry comparison

Accounting item	Match it to	Question if the match is missing
Amount used as the starting point	Outcome document and stated period or scope	What is included in this figure?
Attorney fee	Current agreement and applicable approval	Which method and services explain it?
Expenses	Itemized expense accounting and relevant terms	What does each entry represent?
Other adjustment	Document expressly explaining that adjustment	Why is it included here?
Remittance	Statement’s calculation and receipt record	How was the displayed result reached?

The table does not authorize any deduction or decide which adjustments apply. If an entry has no explanation, mark it as unresolved rather than assuming it belongs in a familiar category.

Follow the sequence actually used

Read the statement from its starting amount through each calculation step. Compare that order with the written agreement’s expense provisions. Check whether the method uses the same definitions and scope. A difference can be a question about wording, arithmetic or an intervening order; do not assume which one before asking.

Keep the arithmetic check separate from the legal interpretation. If the listed amounts do not reconcile, state that visible difference. If they do reconcile but a charge is unexplained, ask for its basis. Correct arithmetic does not supply an absent explanation.

Preserve a traceable correction

If a corrected statement is issued, save both versions with dates and the explanation of the change. Ask which statement is current and whether any further payment or accounting is being discussed. Avoid replacing the earlier statement in a way that loses the sequence.

Where an order contains fee language, use its exact payer and payment direction instead of assuming every fee is deducted from the client’s proceeds. If an interpretation remains disputed, seek an explanation for the specific matter. This article does not decide a refund, permissible fee or available remedy.

For the earlier reading task, see contingent fee calculation questions. For the order’s directions, use who pays what. Further accounting and fee topics are in payments and fees.