How to use this litigation glossary
This glossary is designed as a quick reference for law-office calculations. The definitions explain how terms are used in the calculators on this site, but they do not decide the legal meaning of a term in a particular jurisdiction, contract, fee agreement, lien claim, court rule, or case.
If you are working through a settlement, the usual calculation sequence is to identify the recovery, calculate the applicable fee under the actual agreement, confirm costs and payoff figures, then assemble the final distribution. Deadline calculations should be performed only after identifying the rule that controls the triggering event and counting method.
Settlement Distribution Terms
These terms commonly appear when working through this part of a litigation matter. For arithmetic based on your own matter-specific inputs, use the Settlement Distribution Calculator.
Settlement Distribution
The process of allocating a settlement or other recovery among attorney fees, case costs, lien payoffs, other deductions, credits, and the amount ultimately available to the client.
Gross Settlement
The total settlement or recovery amount before attorney fees, case costs, liens, advances, or other deductions are subtracted.
Gross Recovery
A general term for the full amount recovered before deductions; in a settlement matter it is often the same starting figure as the gross settlement.
Client Net
The estimated amount remaining for the client after applicable entered fees, costs, liens, advances, and other deductions are subtracted and any credits are added.
Net Settlement
Another common way to describe the amount remaining from a settlement after the entered deductions and adjustments are applied.
Attorney Fee
The amount payable to the attorney or law firm under the applicable fee agreement; the amount may be fixed, hourly, percentage-based, or calculated another way.
Case Costs
Expenses associated with handling a matter, such as filing fees, expert charges, record fees, deposition costs, service fees, or other litigation expenses.
Client Advance
An amount previously advanced for or to the client that may need to be accounted for when calculating a final distribution, depending on the matter and agreement.
Credit or Refund
An amount added back to the distribution calculation because money is being returned, credited, or otherwise increasing the amount available after deductions.
Disbursement
A payment made from settlement or other matter funds to a client, attorney, lien claimant, provider, vendor, or other recipient.
Contingency Fee Terms
These terms commonly appear when working through this part of a litigation matter. For arithmetic based on your own matter-specific inputs, use the Contingency Fee Calculator.
Contingency Fee
An attorney fee calculated in relation to the recovery in a matter, usually by applying an agreed percentage or formula to a defined fee base.
Contingency Fee Percentage
The percentage stated in the applicable fee agreement that is applied to the agreed fee base to calculate a percentage-based attorney fee.
Fee Base
The dollar amount to which the contingency fee percentage is applied; the correct base depends on the applicable fee agreement and governing requirements.
Gross-Recovery Fee
A contingency fee calculated by applying the agreed percentage to the gross recovery before subtracting case costs or other entered deductions.
After-Cost Fee Base
A fee base calculated after subtracting specified case costs from the recovery before applying the contingency fee percentage, when the applicable agreement uses that method.
Costs Advanced
Case expenses paid or advanced during the matter that may later be reimbursed or included in the settlement accounting, depending on the fee agreement and governing requirements.
Fixed Additional Fee
A separate fixed dollar fee added to a percentage-based calculation when the applicable agreement or matter calls for one.
Lien & Lien Reduction Terms
These terms commonly appear when working through this part of a litigation matter. For arithmetic based on your own matter-specific inputs, use the Lien Reduction Calculator.
Lien
A claim or asserted right against property, proceeds, or funds; whether a particular lien is valid, enforceable, or entitled to priority depends on the governing law and facts.
Medical Lien
A lien or asserted claim connected to medical treatment or medical expenses that may affect how settlement proceeds are distributed.
Reimbursement Claim
A claim seeking repayment from a recovery for amounts previously paid or benefits previously provided, such as certain insurer or benefit-plan claims.
Original Lien Balance
The starting amount asserted by a lien holder, provider, insurer, plan, agency, or other claimant before any negotiated reduction or adjustment.
Negotiated Payoff
The amount a claimant agrees to accept in satisfaction of an asserted balance, subject to the terms of the actual payoff agreement or confirmation.
Lien Reduction
The difference between the original asserted lien balance and the negotiated or accepted payoff amount.
Lien Reduction Percentage
The lien reduction expressed as a percentage of the original asserted balance, calculated by dividing the reduction amount by the original balance.
Lien Savings
The dollar amount by which the accepted payoff is lower than the original asserted lien balance.
Legal Deadline & Date Terms
These terms commonly appear when working through this part of a litigation matter. For arithmetic based on your own matter-specific inputs, use the Legal Deadline & Date Calculator.
Legal Deadline
A date by which an act, filing, response, payment, service, or other required step must be completed under the controlling rule, order, agreement, or authority.
Trigger Date
The event date from which a deadline period is measured, such as a filing date, service date, entry date, receipt date, signing date, or another controlling event.
Start Date
The date entered as the beginning point for a date calculation; whether that date is counted depends on the applicable counting rule.
Calendar Day
Any day on the calendar, including Saturdays, Sundays, and holidays unless the controlling rule provides otherwise.
Business Day
For the general calculator on this site, a Monday through Friday day; the tool does not automatically exclude court, agency, federal, state, local, or firm-specific holidays.
Include Start Date
A counting choice that treats the entered start date as day one; whether the start date should be included must be determined from the applicable deadline rule.
Exclude Start Date
A counting choice that begins the count after the entered start date; whether this method applies must be determined from the applicable deadline rule.
Weekend Adjustment
A calculation option that moves a result falling on Saturday or Sunday to a weekday; it does not determine whether a particular rule permits or requires that adjustment.
Days Between Dates
The elapsed number of days between two entered dates, calculated separately from any jurisdiction-specific deadline-counting rule.
How these terms connect in a settlement workflow
- Start with the gross recovery. Confirm the settlement, judgment, or other amount actually available.
- Calculate the attorney fee. Use the signed fee agreement and the Contingency Fee Calculator to check the fee arithmetic.
- Confirm costs and liens. Reconcile case expenses and use the Lien Reduction Calculator when comparing an original lien with a negotiated payoff.
- Calculate the client distribution. Bring the confirmed amounts into the Settlement Distribution Calculator.
- Track separate deadlines carefully. Once the governing deadline rule is known, use the Legal Deadline & Date Calculator to perform the date arithmetic.