You'll usually see this split on a settlement statement, medical bill, or attorney contract as two separate lines: one for "fees" and one for "costs." They are not the same thing, even though people often lump them together. Fees are what a professional charges for work or services, such as an attorney's percentage in a contingency fee case. Costs are the out-of-pocket expenses tied to moving a claim forward, such as filing fees, medical records charges, expert witness bills, deposition transcripts, or paying to obtain a crash report.

That distinction matters because a lot of bad advice boils down to "the lawyer only gets paid if you win," as if that settles everything. Maybe, maybe not. Many retainer agreements say fees are contingent, but costs may still be deducted from the settlement, and sometimes the contract explains whether costs come out before or after the fee is calculated. That can change your net recovery more than people expect.

In an injury claim, especially after a serious crash with treatment at a place like UNM Hospital, costs can rise fast. New Mexico does not set one flat rule for every case, so the answer is usually in the contract and the closing statement, not rumor. Under the New Mexico Rules of Professional Conduct, Rule 16-105 NMRA governs attorney fees and Rule 16-115 NMRA covers handling client funds. Read both lines, not just the percentage.