How Do Lawyers Bill In Ontario?

1
How Do Lawyers Bill In Ontario?
2
This blog is right up there with how much does
it cost to hire a lawyer? and there are as many
answers as lawyers out there!But if youre
looking to retain a lawyer in the province of
Ontario, there are three types of structures you
can expect to see and which one your lawyer will
use depends on their area of practice
3
1. Flat feeLawyers who deal with more
transactional work, like wills and estates,
incorporations and real estate deals, employ this
fee structure.For example, a real estate lawyer
may charge you 1500 and the break down will
include certain services like a title search,
registering your mortgage, etc.
4
It will also include disbursements. These are out
of pocket expenses that your lawyer incurs on
your behalf. For example, the city might charge
the lawyer a small fee to do the title search,
and the lawyer will include that on your
invoice.More and more lawyers are putting flat
fees on services because the public likes them
and, for these kinds of services, I think theyre
great.
5
2. HourlyMost family lawyers will charge an
hourly rate and upfront retainer fee.The hourly
rates are not based on the size of the case or
the outcome. You are paying the lawyer for their
work throughout. Generally, the fee is set by
the firm and is the same for a 10k case as a
10M case. 400 an hour is 400 an hour no matter
how many hours your lawyer logs.
6
When a lawyer uses an hourly billing system,
dont expect them to provide you with a simple
quote. Its tough to anticipate what is going to
happen in any kind of lawsuit. Some of the more
experienced lawyers may be willing to ballpark
your case but, without a crystal ball, their
guess is as good as yours.
7
One thing to anticipate with firms that charge
hourly is the upfront retainer. They wont start
your case for free. Its not uncommon for lawyers
to charge 3k, 5k, 10k or more. The better the
lawyer (and the bigger the firm) the more your
retainer will cost you.As for average hourly
fees?
8
Theres no such thing. Hourly fees are all over
the map depending on where you live, the size of
the firm, and the experience of the lawyer.Does
a larger hour fee mean the lawyer is better?  Not
if you hire a lawyer in a big firm where its
mostly junior lawyers and other staff who do the
heavy lifting.
9
3. ContingencyContingency fees create access to
justice for people who otherwise cant afford
it.As a personal injury lawyer, this is how I
bill.Contingency fees are based on there being a
recovery i.e. you only pay if you receive a
settlement, which is why so many people prefer
contingency fees over a big, upfront retainer.
10
But there are a few things to be aware of with
contingency feesLanguage Most personal injury
companies will advertise that you dont pay
unless we win, and that makes me cringe. The
correct language should be you only pay when we
recover a settlement for you. Okay, its not
nearly as catchy, but its TRUE.
11
You see, you dont win or lose a case
Hollywood-style, a personal injury lawsuit is
about a long term negotiation for the right
settlement.Disbursements Even if your personal
injury lawyer is unable to obtain a settlement
for you (and this is rare if we take your case,
we do so because we believe we will both get paid)
12
you are still responsible for those out-of-pocket
expenses I mentioned above. If you are paid, the
disbursements are settled above and beyond the
lawyers percentage.HST Dont forget about the
HST! Most clients dont even think about it until
that 13 is added to the lawyers fee.
13
Unfortunately in the province of Ontario, we all
must charge HST. Its a big chunk that I wish I
didnt have to charge, but I do, so expect
it.Why Are Lawyers So Secretive About Fees?
Its true that most lawyers dont like to talk
openly about fees.
14
Part of this is simply characteristic of the
industry. Even though were getting savvier about
marketing and customer service, the legal
profession is still, at its heart, very
traditional. Youll see fees advertised on legal
websites about as often as youll see doctors
advertising their rates on websites.
15
Also, dont expect to negotiate fees with your
lawyer either. While I fully encourage you to ask
questions and understand the fees inside out,
most firms/lawyers consider their fees to be
non-negotiable. If you feel the need the question
the value of your lawyer, then you need to find
one whose work you do value.
16
Finally, remember that, whomever you hire, they
should work with you closely and not just send an
army of articling students your way. I think this
is key to the successful resolution of any case
regardless of the fee structure.http//derekwilso
nlaw.ca