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What if My Lawyer’s Bill is Too High ?
I think this is a question asked in every City, County, Municipality, Province, State, Territory, Republic, Country in the world. Unfortunately, this paragraph only applies to Lawyers working in the Province of Ontario. It is most important, when hiring (or retaining) the services of a lawyer to understand the billing practice of that lawyer or law firm that the lawyer is employed by. There are several ways that lawyers charge for their services :[/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” box_shadow_on_row=”no”][vc_column][vc_column_text]
- Retainer Fee : Most lawyers require a “retainer” before he/she agrees to go on record as your counsel in the legal matter which you are faced with. This normally means that the lawyer will assess your legal matter and will try to determine how much time will be involved, given his/her experience in similar matters and will base their charge of a retainer fee on this assessment. Normally this means that you would have to pay him/her an amount equal to what the entire case may cost, up front. This money is deposited into a client trust fund and is drawn upon, as the services are performed. The lawyer should provide you with a receipt for the retainer and should send you notices every time this fund has monies drawn from it. You must keep all of this paperwork. It is not unusual, if the matter is continuing, for the lawyer to ask for additional funds or at the end of the case, to ask for additional funds, if the original retainer did not cover the total expenses.
- Hourly Rate : In addition to the retainer above, most lawyers, after receiving the retainer fee, will then charge an hourly rate for their services. You should know what this rate is, as it will affect the bottom line. Remember, the most experienced, more senior lawyers, of those with a “Q.C” after their name (Queen’s Counsel) will charge a lot more. Sometimes, the firm has a more junior lawyer, who charges less per hour, who the more senior lawyer may agree to oversee, while the work is being performed on your file.
- Flat Fee : Some lawyers will charge a flat rate. A flat fee or flat rate means that the lawyer will charge you a particular fee, for a particular service, irrespective of the amount of time that is required to perform that service.
- Sliding Scale : Some lawyers will bill you on a sliding scale. This means that if you have a low income or are economically challenged, you will be charged less.
- Pro Bono : This is when a lawyer performs the work free of charge.
- Contingency Fees : For many, this arrangement is a practical way to hire a lawyer. Normally, those who cannot afford to retain a lawyer with a large retainer provided up front and do not qualify for legal assistance, prefer to sign an agreement before the action commences, which guarantees the lawyer a percentage of the monies awarded to the client. Normally this agreement excludes disbursement fees and only applies if there is a positive outcome in the matter. This type of deal cannot cover criminal or family law matters.
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It is important to know, before hiring a lawyer, what their billing practices are, how much they will charge you, if they are willing to be paid in “installments”. It is important to know this in advance as it will lead to less problems at the conclusion of your relationship with that lawyer. A lot of post-trial problems can be avoided if you are referred by someone you know and trust, who can explain to you, their particular experience with that particular lawyer. Lawyers are, by the nature of the profession, suppose to have integrity and are presumed to be of good character. Unfortunately, some lawyers are ambitious and to fund that ambition, they will knowingly and without reservation, over-charge their clients.
You can have your lawyer’s bill lowered. There is a process and procedure in place to do this through the Superior Court of Justice in your area of the Province, not through the Law Society of Upper Canada. You would have to make an appointment with an Assessment Officer or Master and this would have to be done within thirty (30) days of having received your bill from your lawyer for services rendered.
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Before you make the decision, to challenge your lawyer’s bill before an Assessment Officer or Master, you must ask that your lawyer provide you with an itemized bill, which includes all the work that he/she performed on your behalf. A lump sum bill is insufficient; it must break down the work (the dates, times, the hours, letters, appearances on your behalf, phone calls, photocopies, disbursements, etc.) and show the total owing.
The Law Society of Upper Canada does not have the authority to determine how much someone should be charged for legal services. Your lawyer must provide you with an itemized bill which shows a lump sum for fees and a breakdown of individual disbursements. Disbursements are monies that your lawyer has spent on your behalf to pay other parties who have provided services in support of your case (ie- specialists, etc.).
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