If I get a case on contingency that goes bad, I have to pay tax on it because I'm not going to know that the case has gone bad until I've reached a conclusion, which due to our court system.... We don't have the fastest system in the world. I know in Vancouver they actually closed family chambers for a day because they didn't have any judges.
People, by the way, still had to pay their lawyers. Of course if they're on contingency, I guess the lawyer would have to pay tax for that day.