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In a pair of cases with potential pocketbook impact on lawyers and their clients, the Supreme Court ruled Monday that the contingent fee portion of lawsuit settlements and awards is taxable to the client, even if the money goes directly to the attorney. Although a new law limits the ruling's implications, experts forecast more costly settlements for some types of commercial litigation, because winning plaintiffs may insist that the extra tax they have to pay be tacked onto the settlement.
January 25, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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