Toronto Lawyers

When you’re shopping for legal services, always ask potential lawyers to fully explain their fees and billing practices. Don’t hesitate to ask detailed questions and don’t be embarrassed.

A lawyer’s willingness to discuss fees is an important indicator of how he or she treats clients.

Payment arrangements may include:

* Hourly rates are the most common arrangement. The attorney gets paid an agreed-upon hourly rate for the hours he or she works on a client’s file or matter until it’s resolved. Cheaper is not necessarily better when it comes to your legal protection. A more expensive lawyer with a lot of experience may be able to handle a complex problem more quickly.

* Flat Fees - Where a legal matter is simple and well defined, lawyers typically charge a flat fee. Examples of flat fee matters include wills and uncontested divorces. If a lawyer suggests or has advertised a flat fee, be sure you understand exactly what that fee will and will not cover. The flat fee might not include expenses such as filing fees.

* A retainer fee is typically an advance payment on the hourly rate for a specific file. The lawyer puts the retainer in a trust account and deducts from that account the cost of services as they accrue. During the course of legal representation, clients should review periodic billing statements reflecting amounts deducted from the retainer. Most retainers are non-refundable unless labeled “unreasonable” by a court. If you decide to drop a case that your lawyer has worked on before the retainer has been exhausted, you may forfeit the remainder.

* Contingency fee: (Note: These are the rules for British Columbia. For rules in other jurisdiction refer to the Law Society for your jurisdiction) In a contingency fee agreement, the lawyer acts for the client in return for a percentage of the money the client wins in a lawsuit. If no money is recovered, the lawyer collects no fee. Contingency fee agreements are common in personal injury claims, product liability cases and class actions.

Contingency fee agreements must be in writing. Contingency fees are not permitted in family law cases involving child custody or access. They are permitted in other types of family law cases, but must be approved by the court.

In a claim for personal injury or wrongful death arising out of a motor vehicle accident, the maximum contingency fee allowed is one-third of the amount recovered. In all other cases involving personal injury or wrongful death, the maximum allowed is 40% of the amount recovered. There are no maximum limits for contingency fees in cases not involving personal injury or wrongful death. Lawyers often vary their contingency fee rates depending on the amount of the claim, the degree of risk involved and the stage at which the case is resolved.

In most contingency fee agreements, the client is required to pay all disbursements, such as medical reports, court filing fees and photocopying charges, regardless of the outcome of the case.

How much can you expect to pay?

Rates for legal fees vary based on location, experience of the lawyer, and the nature of the matter. Rates may vary anywhere from $50 an hour to a $1,000 an hour or more.

In rural areas and small towns, lawyers tend to charge less, and fees in the range of $100 to $200 an hour for an experienced attorney are probably the norm. In major metropolitan areas, the norm is probably closer to $200 to $400 an hour. Lawyers with expertise in specialized areas may charge much more.

What about Disbursements (expenses and court costs)?

Lawyers refer to all billing items other than fees as “disbursements”. Discuss with your lawyer anticipated miscellaneous costs so that you can estimate those costs up front and avoid any unpleasant surprises.

Ways to Keep your Legal Costs as Low as Possible

* Prepare and be well organized for each meeting with your lawyer. Make sure you have all documents in order and that you have reviewed any documents your lawyer has sent you.

* Keep your communications with your lawyer concise and organized. Don’t spend time discussing issues unrelated to your legal matter.

* Tell your whole story, even if it is damaging or embarrassing. Your lawyer needs to consider all options. Anything you tell your lawyer is confidential and your lawyer is not allowed to disclose it without your consent.

* Try to make the right decisions the first time. Frequently changing your mind will cost you money.

* Get to know your lawyer’s assistants. If a secretary, legal assistant, articling student or junior lawyer can help you, contact that person instead of the most senior lawyer.

* Find out if your expectations are reasonable. Talk to your lawyer about his or her legal opinion, especially if you are thinking about going to court.

* Find out about your options and alternatives.

* Make sure you and your lawyer agree on your plans and priorities and that they are likely to lead to the outcome you want.

Disagreement over Legal Fees

* If you don’t understand some of the items on your bill or if you disagree with the amount, the first step is to talk it over with your lawyer. If your lawyer practices with a firm, there may be another member of the firm with whom you can discuss the bill. Go over the details and ask the lawyer to explain why a particular charge was made.

* If you and your lawyer can’t resolve your differences, you have the right to have your lawyer’s fees taxed (reviewed) by a Registrar of your province’s Supreme Court. Normally, a review of a bill must take place within three months after it was paid or, if unpaid, within one year after it was sent to you. Contingency fee agreements can also be reviewed within three months after the agreement was made or terminated.

* Some Law Societies offer an informal fee mediation service if both you and your lawyer agree this is appropriate. Under this program, an independent mediator will assist the lawyer and client to reach a mutually agreeable resolution. If you do not reach an agreement, you can apply for a fee review, provided the time limit for applying for a review has not expired. In BC the cost of the fee mediation is $25 for each party.

Toronto Lawyer