Fees
In most cases our fees are based upon the time and the responsibility involved, although in some cases a flat fee or a contingency fee is appropriate. You should feel free to discuss our fees with one of our lawyers at any time.
Disbursements
The work we do for you may require us to make certain payments on you behalf in addition to our fee for legal services. These may be payable in advance or billed periodically.
Retainers
In some cases our office policy requires an advance payment towards our fee. This payment will be deposited into our trust account as a credit against the services we will perform and the expenses to be incurred on you behalf. As your work proceeds we will submit accounts to you, and will debit your account accordingly.
Some people avoid going to the lawyer, because they fear it costs too much. Others go but don't ask about fees because they think it is improper to do so.
There's nothing mysterious, or secret, about a lawyer's fee. It's your money and you have the right to know how you will be charged, how much it will cost and when you will have to pay.
Don't delay getting legal advice because you are afraid of the cost. You may jeopardize your legal rights and it may cost more in the long run.
What You Are Paying For
When you hire a lawyer, you are buying:
The more you use of each, the more it will cost. However, there are steps you can take to keep your costs down and still receive fine service.
Methods of Calculating Your Lawyer's Fee
There are no set fee schedules governing the amount lawyers charge. The method of calculating fees may vary with each lawyer, and with different types of legal services. Here are the most common methods:
- Fixed Fee - If you hire a lawyer to provide a routine service such as a conveyance, an incorporation or an impaired driving defence, the lawyer may be able to quote a flat fee regardless of the amount of work or the number of court appearances involved. A lawyer will only use this method when he or she can calculate fairly accurately the time required.
- Hourly Rate - Sometimes a lawyer cannot predict the amount of time required when a case begins. For example, a complicated lease or a dispute over the custody of a child may get very involved. In those situations, your lawyer may keep a record of the time spent on the case and charge you an hourly rate. If the case involves a court trial, your lawyer may set a daily trial rate.
- Percentage Fee - Fees may be calculated as a percentage of the value of the subject matter. This approach is
often used when probating an estate or collecting debts.
- Contingency Fee - You may wish to pursue a case, but have no funds to pay your lawyer at the onset of the
case. For example, you may have been injured in an automobile accident or may be suing someone for negligence. Your lawyer may agree to act on your behalf and take as a fee a percentage of the award which you eventually receive. If you win, your lawyer receives a fee; if you lose, the lawyer does not receive a fee. You will, however, be responsible to pay disbursements and costs depending on your agreement with the lawyer, and the settlement with the other side.
- Lump Sum Fee - Some services don't fit conveniently into any of the above categories. In these situations, the lawyer and the client are able to agree on a lump sum fee, at the end of the case, which fairly reflects the amount of time spent by the lawyer, and other relevant factors mentioned below.
Factors Your Lawyer Considers in Calculating the Fee
In deciding what fee, rate or percentage to charge, your lawyers will take into account the following factors:
- The extent and character of the services to be rendered.
- The labour, time and trouble involved.
- The character, and importance of the matter.
- The amount of money or value of property involved.
- The results achieved.
Some Special Terms
- Retainer - When first discussing your case with you lawyer, he or she will usually ask for a retainer. This is a sum of money which will be deposited in the lawyer's trust account as a credit against the services he or she will perform and expenses to be incurred on your behalf. As the case proceeds, the lawyer will submit accounts to you, and will debit your account accordingly.
- Disbursements - These are out-of-pocket expenses, such as court filing fees or expert reports, which the lawyer incurs on your behalf. You are responsible for them and, unless they are deducted from your retainer, you will be billed for them as they arise.
- Costs - When a case goes to court, the judge will normally award "costs" to the successful party. If you win, the losing party will be required to pay part of your lawyer's account, calculated according to a fixed schedule. Normally the schedule will allow only part of your lawyer's total account, and you are responsible for the balance. If you lose the case, you will have to pay all your own lawyer's fees, and a portion of the successful party's legal fees. It is very common in arrangements made with lawyers for the lawyer to receive, as part of his fee, the allowable court costs awarded in your favour.
Discussing Fees with Your Lawyer
During the first appointment with you lawyer, you should quite openly discuss and settle the following:
- How you will be charged - e.g. a fixed fee, an hourly rate, a contingent or percentage fee or a lump sum fee.
- What the fee, rate or percentage will be.
- What the total cost of fees and disbursements will be, or at least an estimate.
- When you will be billed - e.g. a retainer, each month, prior to trial or out of the proceeds.
Whatever you agree upon, get it in writing. Then both you and your lawyer will know exactly what you have agreed to and it will avoid disputes later. You should feel free to discuss legal fees and costs at any stage of your arrangement with your lawyer. In a long time or time consuming case, where you received only an estimate of the legal fees, you should discuss frequently with you lawyer the costs at all stages of the proceeding.
Ways to Keep Your Legal Costs Down
Since you are buying your lawyer's time, the less you use the less it will cost. Here are some tips:
Before Going to See Your Lawyer
- Get all your papers and documents together, and put them in order.
- Write out a chronology of events.
- Note the names and addresses of the witnesses.
- Write out the issues upon which you want advice.
When You Talk to Your Lawyer
- Stick to the facts.
- Tell the lawyer all the facts, good and bad.
- Ask questions if you don't understand the advice you are given.
- Ask what you can do to speed up the case in order to reduce your costs.
- Ask your lawyer to keep you informed of developments in your case.
After You've Talked to Your Lawyer
- Don't make unnecessary phone calls to his or her office.
- Consider writing your lawyer instead of calling wherever possible. This provides written record. If you must call, consider asking the lawyer's secretary to help you as first line of information to reduce the time you must spend talking to your lawyer.
- Be realistic about the matters in dispute. For example, don't spend $500 on legal fees to recover a $200 TV.
If You are Unhappy With Your Lawyer's Account
If you believe you lawyer's account is unreasonable:
- First: Discuss it with your lawyer, there may be a genuine misunderstanding about what he or she had to do to resolve your legal problem.
- Then: If you are still unsatisfied, you can apply to your local Taxing Officer located at the Court of Queen's Bench Courthouse nearest to your lawyer's practise, to have the account reviewed. Normally you must have the bill taxed within one year of the date you received it, or within 6 months from the date you paid it.
Disclaimer:
The material on this web site is intended to provide general information only. Statements of law may not apply in situations with differing facts and circumstances. You should always discuss your own particular circumstances with a properly qualified lawyer.
For more information contact Davidson & Williams at
lethbridge@davidsonandwilliams.com in Lethbridge or
pincher@davidsonandwilliams.com in Pincher Creek
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February 13, 2003