Difference between revisions of "Lawyers' Fees: Preventing and Solving Problems"

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Lawyers must be fair and transparent in the '''fees''' they charge. Learn about the types of fee arrangements lawyers use, and your options if you’re concerned about your lawyer’s bill.


This script explains how lawyers’ fees are calculated and billed. You can also check the following scripts:
==Understand the legal framework==
*[[Choosing a Lawyer (Script 435)|435]], called “Choosing a Lawyer”
*[[If You Have a Problem With Your Lawyer (Script 436)|436]], called “If You Have a Problem with Your Lawyer”


==Do you fear fees?==
===Lawyers must be fair and transparent in charging fees===
You may approach a lawyer's office like you approach a dentist's office—thinking it's going to be painful—not in your mouth, but in your pocketbook. You don't know how much it’s going to cost, and you're afraid to ask. All you know is it could cost a lot.
For lawyers, much like other professional advisors, fees are a market issue. There are no fixed rates for legal services, and the Law Society of BC (which regulates lawyers in British Columbia) has no authority to control what lawyers charge. (There is one exception: the Law Society sets maximums for some “contingency fees”, where a lawyer gets a percentage of the money the client wins in a lawsuit.)


Some people won’t even go to a lawyer when they have a legal problem because they fear the cost. And many people who go to a lawyer never ask about fees. They may be embarrassed or think it's impolite to talk about money. These people are mistaken because a delay in seeing a lawyer can cost them more in the end. It can also hurt their position. Failing to ask about fees can lead to problems and misunderstandings.
That said, [https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-–-relationship-to-clients/#3.6 lawyers have an obligation] to be fair and transparent in the fees they charge. What is a fair and reasonable fee depends on factors such as the time and effort spent, the difficulty of the matter, whether special skill was required, and the results obtained.


If you have a legal problem, don't avoid lawyers because of the cost (if you can’t afford a lawyer, see the note at the end of this script). When you see a lawyer, ask about fees the first time you meet. Lawyers should be able to tell you how they will calculate the fee and when they will bill you. They usually can’t give you a firm estimate of the total cost because it depends on many things that are hard to estimate, including the time a case will take.
There are several types of fee arrangements lawyers use. Many lawyers charge by the hour. Some offer fixed fees. Others charge a contingency fee. We explain each of these here.  


No rule controls how much lawyers can charge or how they can bill you—the market decides these things. Lawyers usually bill you in one of the following four ways: fixed fee, hourly rate, contingency fee, or lump sum.
===Most lawyers charge by the hour===
Most lawyers charge fees based on an '''hourly rate'''. The amount can vary from lawyer to lawyer. Hourly rates usually reflect the lawyer's skill and experience — senior lawyers charge more per hour than lawyers who are just starting out in practice.


====1. Fixed fees====
A lawyer charging by the hour keeps detailed records of all the time spent on your file. Then they multiply the total hours by their hourly rate to get your bill.  
Fixed fees are most common for routine work like wills and real estate. Some lawyers also use fixed fees for uncontested divorces and routine criminal cases, like impaired driving, theft, and assault. You pay the amount the lawyer quotes you, regardless of how much time the lawyer spends on the case.


:====2. Hourly rates====
===Fixed fees are commonly used for specific transactions===  
:Hourly rates are the most common type of fee, probably because it is hard to predict at the start of a case just how much time it will take. A lawyer keeps detailed records of all the time spent on a case. Then they multiply the total hours by their hourly rate to get your bill. Most lawyers have a trial rate, by day or by court appearance, and it’s often higher than their normal hourly rate. Both hourly rates and trial rates depend on several things – the most important one is the lawyer's experience in an area of law. More experience means a higher rate.
'''Fixed fees''' are commonly used for specific transactions such as purchasing a home or incorporating a business. The fee is fixed at a specific amount (a “flat rate”), regardless of how much time the lawyer spends to get the work done.  


===3. Contingency fees===
Many lawyers used fixed fees for preparing specific types of documents, such as a will, a representation agreement, or a separation agreement. Some lawyers use fixed fees for uncontested divorces or defending a client on a minor criminal charge.
Contingency fees depend (or are contingent) on whether you win your case. If you win, you pay your lawyer part of the money you get. If you lose, you don’t pay your lawyer any fee, but you still pay expenses, such as medical reports and court filing fees.


Contingency fees are most common in personal injury and wrongful death cases from motor vehicle accidents. In these cases, the maximum fee is one-third of the amount recovered. In other cases involving personal injury or wrongful death, the maximum is 40%. These maximums are set by Part 8 of the Law Society Rules, available on the Law Society website ([http://www.lawsociety.bc.ca www.lawsociety.bc.ca]) under “[http://www.lawsociety.bc.ca/page.cfm?cid=93&t=Publications Publications]”. There are no maximums for other types of cases.
===Contingency fees depend on the result of the case===
'''Contingency fees''' depend (or are “contingent”) on whether the client wins their case. If the client wins, the lawyer gets part of the money awarded. If the client loses, they don’t pay the lawyer any fee (but the client still pays '''expenses''', such as the costs to file documents in court or pay for expert reports).


Contingency fee agreements must be in writing. Contingency fees are not allowed in family law cases involving child custody or access.
Contingency fees are common in personal injury claims, product liability cases, and class actions. Contingency fees are '''not''' allowed 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.


At the start of your case, you and your lawyer agree on the amount of the fee as a percentage of what you win. The actual percentage depends on your chance of success, the amount of your claim, and whether your case goes to trial or settles before trial. The percentage is lower if your case settles early, before the lawyer has done much trial preparation. The percentage is higher if your case goes to trial. Your agreement with the lawyer will have different percentages for different outcomes.
====Maximum amounts====
In personal injury cases involving a motor vehicle accident, the '''maximum contingency fee''' is one-third of the amount recovered. In all other cases involving personal injury or wrongful death, the maximum is 40%. These maximums are set in the [https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/law-society-rules/part-8-%E2%80%93-lawyers%E2%80%99-fees/ Law Society Rules].  


===4. Lump-sum fees===
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.
Sometimes the first three types of fees may not work. In that case, you and the lawyer can try to agree on a lump sum that fairly reflects the time spent and all the other factors. If you can’t agree, you will have to ask a Registrar of the Supreme Court or the Law Society for help (see details below).


==Is there tax on lawyers’ fees?==
====Arriving at a contingency fee====  
Yes, you have to pay GST plus provincial tax on your lawyer’s fee and on most expenses.
At the start of your case, you and your lawyer agree on the amount of the fee as a percentage of what you win. The percentage might depend on your chance of success, the amount of your claim, and whether your case goes to trial or settles before trial. The percentage is typically lower if your case settles early, before the lawyer has done much trial preparation. The percentage is higher if your case goes to trial. Your agreement with the lawyer will typically have different percentages for different outcomes.


==What is a retainer?==
Contingency fee agreements must be in '''writing'''.  
A retainer is money you pay to your lawyer as a deposit at the start of your case. The lawyer keeps this money in a trust account and uses it for fees and expenses. The lawyer bills you periodically and takes the amount you owe from the retainer. The lawyer may bill you monthly, or at the end of each stage of your case, or at the end of your case. When the retainer falls below a certain level, the lawyer asks you for more money.


==What are disbursements?==
===If you can’t afford a lawyer===
Disbursements are expenses your lawyer pays for you. You have to pay your lawyer for those expenses. They include costs of photocopies, faxes, long distance telephone calls, postage, couriers, experts, medical reports, and court filings. Disbursements can often be high—ask your lawyer to estimate how much they will be.
If you have a low income, and are facing some types of criminal, family, or immigration problems, you may be able to get a lawyer for free from '''legal aid'''. Contact the Legal Services Society by visiting [https://legalaid.bc.ca legalaid.bc.ca] or calling 604-408-2172 in Greater Vancouver or toll-free 1-866-577-2525 elsewhere in BC.


Do you have a written agreement with your lawyer?
If you don’t qualify for legal aid, see our information on [[Low Cost and Free Legal Services (Script 430)|free and low-cost legal services (no. 430)]] for other options.  
Make sure you have a written agreement with your lawyer that covers fees. If your lawyer doesn't use a standard form for this, ask for a letter confirming your discussion.


==How can you keep costs down?==
==Prevent problems==
*Ask the lawyer how they will tell you about the progress of your case. Keep your own file with copies of all letters and court documents. Make notes of things you want to bring up at your next meeting. Don’t phone the lawyer too often—many people do this, which means they pay more than they need to. Before you phone, consider if it would be better to write a letter or email. Then you have a written record and your lawyer can deal with your questions properly. If you call, you may interrupt your lawyer who is concentrating on another case. If you must phone, explain to the lawyer's secretary why you are calling. The secretary knows about your case and may be able to help, so you don’t have to speak to the lawyer.


*Be organized, so you don’t waste the lawyer’s time. Before you first meet with the lawyer, make a list of everything you want to say and ask. Make a point-form summary of your case in chronological (or time) order. Include the important details and names (with addresses, phone numbers, and other helpful information). Some lawyers will ask you to fill in a fact sheet before your first interview.
===Discuss fees up front===
When you first meet with your lawyer, ask about fees and expenses. Lawyers have an obligation to be fair and transparent in the fees they charge.
Ask the lawyer to estimate about how much it will cost to fully deal with your legal matter — including fees and expenses (called '''disbursements'''). The lawyer might not be able to give you a firm estimate of the total cost because so much depends on factors outside their control, such as the behaviour of the other party. But they should be able to give you at least a ballpark estimate or range.  


*Ask the lawyer if a junior colleague can do some of the routine work on your case—they have lower rates.
Ask the lawyer:
*How they charge — a flat rate, by the hour, or a percentage of what you win?
*How much is their '''retainer'''? (A retainer is the amount to pay before the lawyer starts work.)
*How they will bill you: monthly or at the end?


*Be reasonable. Try to agree on the minor things that aren't worth fighting about. Save your time and money for the important things.
===Be organized===
If you’re organized, it will keep your costs down by keeping your communication with your lawyer concise and focused. Before your first meeting with the lawyer, make a list of everything you want to say and ask. Make a point-form summary of your case in chronological (or time) order. Include the important details and names (with addresses, phone numbers, and other helpful information). Some lawyers will ask you to fill in a fact sheet before your first interview.


*Don’t count on a court ordering your opponent to pay all your costs. A court can order your opponent to pay costs, but those costs are based on a schedule and may cover only about 35% to 40% of your lawyer’s bill.
===Have a written agreement with your lawyer===
Make sure you have a written agreement with your lawyer that covers fees. If your lawyer doesn't use a form of '''retainer agreement''', ask for a letter confirming your discussion about their fees. A lawyer has a [https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-–-relationship-to-clients/#3.6 professional duty] to provide the client with a written description of the lawyer’s fees, including the basis on which fees will be determined.


*Supreme Court may award costs for fees and disbursements to the successful party. But Provincial Court awards litigation expenses only very rarely.
===Ask the lawyer to keep you updated===
Ask the lawyer how they will tell you about the progress of your matter. Keep your own file with copies of all letters and emails, as well as any court or other documents. Make notes of things you want to bring up at your next meeting.  


==What if you can’t solve a fee problem with your lawyer?==
{| class="wikitable"
If you have a problem with your lawyer’s bill, discuss it with the lawyer. Most lawyers want to clear up any misunderstanding over fees. If you can’t solve the problem, you have the following two choices:
|align="left"|'''Tip'''
Don’t phone the lawyer too often. Many people do, and as a result pay more than they need to. Before you phone, consider if it would be better to write a letter or email. Then you have a written record and your lawyer can deal with your questions properly. If you must phone, explain to the lawyer's assistant why you are calling. The assistant may be able to help, so you don’t have to speak to the lawyer.
|}


# You may be able to use the Law Society’s Fee Mediation Program for disputes from $1,000 to $25,000. It is free. This program works only if your lawyer agrees to use it. If so, the Law Society appoints a mediator to help you reach a settlement. Since the process is voluntary, it works only if you and your lawyer can agree on a settlement. Check Script 436, “If you have a problem with your lawyer”, for more information. And call the Law Society at 604.669.2533 in the lower mainland and 1.800.903.5300 elsewhere in BC. Or see its website at [http://www.lawsociety.bc.ca www.lawsociety.bc.ca]. The Law Society is the organization that licenses all BC lawyers. It protects the public by setting professional standards of competence and conduct for lawyers. It monitors, evaluates, and disciplines them.
===Be reasonable — and have realistic expectations===
# You can ask a Registrar of the BC Supreme Court to review the bill. This costs $80. Plus you may have to pay your lawyer’s costs if you lose. There is no limit on the amount of the fee. You don’t need your lawyer’s agreement to use this process. You have one year from the date of the bill to apply to the registrar—if you have not already paid it. But if you have already paid the bill, you must apply within three months of paying it. The Registrar holds a hearing where you and your lawyer each give your side of the case. Then the Registrar decides what the fee will be. For details, see the Registrar’s Office website at [http://www.courts.gov.bc.ca/supreme_court www.courts.gov.bc.ca/supreme_court]. Click on “About the Supreme Court" and then on “Registrar’s Office”. Lastly, click on “Legal Profession Act Reviews”.
If you are in a dispute or a court matter, try to agree on the minor things that aren't worth fighting about. Save your time and money for the important things.


==What if you can’t afford a lawyer?==
Be realistic. Don't spend $10,000 to recover something worth $5,000. Don’t count on the court ordering the other side to pay all your costs. It’s true that a court may award the successful party an amount to cover some expenses of a lawsuit. But when a court does this, the amounts paid are based on a fixed schedule and may cover only about a third of your lawyer’s bill.  
You may be able to get legal aid, which is run by the Legal Services Society (LSS). It depends on your legal problem and other details. To find a legal aid location near you, go to the LSS website at [http://www.legalaid.bc.ca www.legalaid.bc.ca] and under “Legal aid”, click “Legal aid locations”. Or phone the province-wide Call Centre at 604-408-2172 (Greater Vancouver) or 1-866-577-2525 (toll free elsewhere in BC).


In some cases, a lawyer may be willing to charge you a lower fee if you can’t afford the regular rate.
{| class="wikitable"
|align="left"|'''Tip'''
If you are in Provincial Court, judges rarely award the successful party any amount to cover litigation expenses.
|}


==More information==
==Deal with any problems==
The Law Society of BC website ([http://www.lawsociety.bc.ca www.lawsociety.bc.ca]) has a section called, “Lawyers’ Fees”. It covers common billing practices, contingency fees, fee disputes, and the Law Society Fee Mediation Program.


[updated April 2014]
===Step 1. Discuss your concerns with the lawyer===
If you have a problem with your lawyer’s bill, discuss it with the lawyer. Most lawyers want to clear up any misunderstanding over fees.


​Ask your lawyer what services were performed, and why. Clarify how the lawyer's fee was calculated: was it based on an hourly rate or calculated on some other basis? If you are confused about the disbursements charged, ask what they are for, and why they were necessary.


----
Once you have a good understanding of the bill, explore possible solutions. You may be able to talk about ways to reduce your bill or agree on a payment plan.
----


===Step 2. Try mediation===
If you can’t solve the problem directly with the lawyer, you may be able to use the '''Law Society Fee Mediation Program'''. This is a free, informal service to help lawyers and clients resolve fee disputes quickly without having to go to court. It can be used where the amount in dispute is between $1,000 and $25,000.


The Law Society, the organization that licenses all BC lawyers, offers the mediation program as part of its commitment to protect the public. The program works only if your lawyer agrees to use it. If so, the Law Society appoints a private '''mediator''' to help you reach a settlement. The mediation can occur in person or at a distance. You do not need a lawyer to represent you.
For more information or to apply for fee mediation, visit [https://www.lawsociety.bc.ca/complaints-lawyer-discipline-and-public-hearings/complaints/complaints-about-lawyers-fees/ lawsociety.bc.ca], or call the Law Society at 604-669-2533 in the Lower Mainland and 1-800-903-5300 elsewhere in BC. 
===Step 3. Ask the court to review your lawyer’s bill===
If you are unable to resolve a dispute regarding fees by discussing it with your lawyer or through mediation, you can ask the court to '''review''' your lawyer’s bill to ensure the fees are reasonable. Under the ''[https://www.canlii.org/en/bc/laws/stat/sbc-1998-c-9/latest/sbc-1998-c-9.html#sec70_smooth Legal Profession Act]'', lawyers and clients have the right to have a lawyer’s bill reviewed by a BC Supreme Court registrar. This is a legally trained court officer.
The court’s website at [https://www.courts.gov.bc.ca/supreme_court/practice_and_procedure/registrars_office.aspx courts.gov.bc.ca] includes a package to make an “appointment” for a review hearing. There is an $80 filing fee. (Note that if you lose the review, you may also have to pay your lawyer’s costs.) You don’t need your lawyer’s agreement to use this process. There is no limit to the dollar value of the dispute.
You have '''one year''' from the date of the lawyer’s bill to apply to the court — if you have not already paid the bill. If you have already paid the bill, you must apply within '''three months''' of paying it.
The registrar holds a hearing where you and your lawyer each give your side of the story. Then the registrar decides whether to reduce the bill or leave it unchanged.
===Step 4. Bring a lawsuit===
Clients and lawyers have the right to sue over fee disagreements. If the amount in dispute is under $5,000, the lawsuit would be brought in the [https://civilresolutionbc.ca Civil Resolution Tribunal]. If the dispute is over $5,000 and less than $35,000, the lawsuit would be brought in [[Suing Someone in Small Claims Court (Script 166)|Small Claims Court]]. A claim for over $35,000 can be brought in the [https://www.courts.gov.bc.ca/supreme_court/ BC Supreme Court].
==Common questions==
===Is there tax on lawyers’ fees?===
Yes, you have to pay Goods and Services Tax (GST) plus provincial sales tax (PST) on lawyers' fees and on most expenses.
===How exactly does a retainer work?===
A '''retainer''' is money you pay to your lawyer as a deposit at the start of your legal matter. The lawyer keeps this money in a trust account and uses it for fees and expenses. The lawyer bills you periodically and takes the amount you owe from the retainer. The lawyer may bill you monthly, or at the end of each stage of your legal matter, or at the end when everything is resolved. When the retainer falls below a certain level, the lawyer may ask you for more money to “top up” the retainer.
===What are disbursements?===
'''Disbursements''' are expenses your lawyer pays for you. You have to pay your lawyer for those expenses. They include costs of photocopies, long distance telephone calls, postage, couriers, experts, medical reports, and court filings. Disbursements can often add up — ask your lawyer to estimate how much they will be.
==Get help==
===With more information===
The '''Law Society of BC''' website includes information on lawyers’ fees, including common billing practices, contingency fees, fee disputes, and the Law Society Fee Mediation Program.
:Web: [https://www.lawsociety.bc.ca/working-with-lawyers/lawyers-fees/ lawsociety.bc.ca]
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Revision as of 17:53, 31 March 2019

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Steven Gjukich, Gilchrist & Company in March 2018.

Lawyers must be fair and transparent in the fees they charge. Learn about the types of fee arrangements lawyers use, and your options if you’re concerned about your lawyer’s bill.

Understand the legal framework

Lawyers must be fair and transparent in charging fees

For lawyers, much like other professional advisors, fees are a market issue. There are no fixed rates for legal services, and the Law Society of BC (which regulates lawyers in British Columbia) has no authority to control what lawyers charge. (There is one exception: the Law Society sets maximums for some “contingency fees”, where a lawyer gets a percentage of the money the client wins in a lawsuit.)

That said, lawyers have an obligation to be fair and transparent in the fees they charge. What is a fair and reasonable fee depends on factors such as the time and effort spent, the difficulty of the matter, whether special skill was required, and the results obtained.

There are several types of fee arrangements lawyers use. Many lawyers charge by the hour. Some offer fixed fees. Others charge a contingency fee. We explain each of these here.

Most lawyers charge by the hour

Most lawyers charge fees based on an hourly rate. The amount can vary from lawyer to lawyer. Hourly rates usually reflect the lawyer's skill and experience — senior lawyers charge more per hour than lawyers who are just starting out in practice.

A lawyer charging by the hour keeps detailed records of all the time spent on your file. Then they multiply the total hours by their hourly rate to get your bill.

Fixed fees are commonly used for specific transactions

Fixed fees are commonly used for specific transactions such as purchasing a home or incorporating a business. The fee is fixed at a specific amount (a “flat rate”), regardless of how much time the lawyer spends to get the work done.

Many lawyers used fixed fees for preparing specific types of documents, such as a will, a representation agreement, or a separation agreement. Some lawyers use fixed fees for uncontested divorces or defending a client on a minor criminal charge.

Contingency fees depend on the result of the case

Contingency fees depend (or are “contingent”) on whether the client wins their case. If the client wins, the lawyer gets part of the money awarded. If the client loses, they don’t pay the lawyer any fee (but the client still pays expenses, such as the costs to file documents in court or pay for expert reports).

Contingency fees are common in personal injury claims, product liability cases, and class actions. Contingency fees are not allowed 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.

Maximum amounts

In personal injury cases involving a motor vehicle accident, the maximum contingency fee is one-third of the amount recovered. In all other cases involving personal injury or wrongful death, the maximum is 40%. These maximums are set in the Law Society Rules.

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.

Arriving at a contingency fee

At the start of your case, you and your lawyer agree on the amount of the fee as a percentage of what you win. The percentage might depend on your chance of success, the amount of your claim, and whether your case goes to trial or settles before trial. The percentage is typically lower if your case settles early, before the lawyer has done much trial preparation. The percentage is higher if your case goes to trial. Your agreement with the lawyer will typically have different percentages for different outcomes.

Contingency fee agreements must be in writing.

If you can’t afford a lawyer

If you have a low income, and are facing some types of criminal, family, or immigration problems, you may be able to get a lawyer for free from legal aid. Contact the Legal Services Society by visiting legalaid.bc.ca or calling 604-408-2172 in Greater Vancouver or toll-free 1-866-577-2525 elsewhere in BC.

If you don’t qualify for legal aid, see our information on free and low-cost legal services (no. 430) for other options.

Prevent problems

Discuss fees up front

When you first meet with your lawyer, ask about fees and expenses. Lawyers have an obligation to be fair and transparent in the fees they charge.

Ask the lawyer to estimate about how much it will cost to fully deal with your legal matter — including fees and expenses (called disbursements). The lawyer might not be able to give you a firm estimate of the total cost because so much depends on factors outside their control, such as the behaviour of the other party. But they should be able to give you at least a ballpark estimate or range.

Ask the lawyer:

  • How they charge — a flat rate, by the hour, or a percentage of what you win?
  • How much is their retainer? (A retainer is the amount to pay before the lawyer starts work.)
  • How they will bill you: monthly or at the end?

Be organized

If you’re organized, it will keep your costs down by keeping your communication with your lawyer concise and focused. Before your first meeting with the lawyer, make a list of everything you want to say and ask. Make a point-form summary of your case in chronological (or time) order. Include the important details and names (with addresses, phone numbers, and other helpful information). Some lawyers will ask you to fill in a fact sheet before your first interview.

Have a written agreement with your lawyer

Make sure you have a written agreement with your lawyer that covers fees. If your lawyer doesn't use a form of retainer agreement, ask for a letter confirming your discussion about their fees. A lawyer has a professional duty to provide the client with a written description of the lawyer’s fees, including the basis on which fees will be determined.

Ask the lawyer to keep you updated

Ask the lawyer how they will tell you about the progress of your matter. Keep your own file with copies of all letters and emails, as well as any court or other documents. Make notes of things you want to bring up at your next meeting.

Tip

Don’t phone the lawyer too often. Many people do, and as a result pay more than they need to. Before you phone, consider if it would be better to write a letter or email. Then you have a written record and your lawyer can deal with your questions properly. If you must phone, explain to the lawyer's assistant why you are calling. The assistant may be able to help, so you don’t have to speak to the lawyer.

Be reasonable — and have realistic expectations

If you are in a dispute or a court matter, try to agree on the minor things that aren't worth fighting about. Save your time and money for the important things.

Be realistic. Don't spend $10,000 to recover something worth $5,000. Don’t count on the court ordering the other side to pay all your costs. It’s true that a court may award the successful party an amount to cover some expenses of a lawsuit. But when a court does this, the amounts paid are based on a fixed schedule and may cover only about a third of your lawyer’s bill.

Tip

If you are in Provincial Court, judges rarely award the successful party any amount to cover litigation expenses.

Deal with any problems

Step 1. Discuss your concerns with the lawyer

If you have a problem with your lawyer’s bill, discuss it with the lawyer. Most lawyers want to clear up any misunderstanding over fees.

​Ask your lawyer what services were performed, and why. Clarify how the lawyer's fee was calculated: was it based on an hourly rate or calculated on some other basis? If you are confused about the disbursements charged, ask what they are for, and why they were necessary.

Once you have a good understanding of the bill, explore possible solutions. You may be able to talk about ways to reduce your bill or agree on a payment plan.

Step 2. Try mediation

If you can’t solve the problem directly with the lawyer, you may be able to use the Law Society Fee Mediation Program. This is a free, informal service to help lawyers and clients resolve fee disputes quickly without having to go to court. It can be used where the amount in dispute is between $1,000 and $25,000.

The Law Society, the organization that licenses all BC lawyers, offers the mediation program as part of its commitment to protect the public. The program works only if your lawyer agrees to use it. If so, the Law Society appoints a private mediator to help you reach a settlement. The mediation can occur in person or at a distance. You do not need a lawyer to represent you.

For more information or to apply for fee mediation, visit lawsociety.bc.ca, or call the Law Society at 604-669-2533 in the Lower Mainland and 1-800-903-5300 elsewhere in BC.

Step 3. Ask the court to review your lawyer’s bill

If you are unable to resolve a dispute regarding fees by discussing it with your lawyer or through mediation, you can ask the court to review your lawyer’s bill to ensure the fees are reasonable. Under the Legal Profession Act, lawyers and clients have the right to have a lawyer’s bill reviewed by a BC Supreme Court registrar. This is a legally trained court officer.

The court’s website at courts.gov.bc.ca includes a package to make an “appointment” for a review hearing. There is an $80 filing fee. (Note that if you lose the review, you may also have to pay your lawyer’s costs.) You don’t need your lawyer’s agreement to use this process. There is no limit to the dollar value of the dispute.

You have one year from the date of the lawyer’s bill to apply to the court — if you have not already paid the bill. If you have already paid the bill, you must apply within three months of paying it.

The registrar holds a hearing where you and your lawyer each give your side of the story. Then the registrar decides whether to reduce the bill or leave it unchanged.

Step 4. Bring a lawsuit

Clients and lawyers have the right to sue over fee disagreements. If the amount in dispute is under $5,000, the lawsuit would be brought in the Civil Resolution Tribunal. If the dispute is over $5,000 and less than $35,000, the lawsuit would be brought in Small Claims Court. A claim for over $35,000 can be brought in the BC Supreme Court.

Common questions

Is there tax on lawyers’ fees?

Yes, you have to pay Goods and Services Tax (GST) plus provincial sales tax (PST) on lawyers' fees and on most expenses.

How exactly does a retainer work?

A retainer is money you pay to your lawyer as a deposit at the start of your legal matter. The lawyer keeps this money in a trust account and uses it for fees and expenses. The lawyer bills you periodically and takes the amount you owe from the retainer. The lawyer may bill you monthly, or at the end of each stage of your legal matter, or at the end when everything is resolved. When the retainer falls below a certain level, the lawyer may ask you for more money to “top up” the retainer.

What are disbursements?

Disbursements are expenses your lawyer pays for you. You have to pay your lawyer for those expenses. They include costs of photocopies, long distance telephone calls, postage, couriers, experts, medical reports, and court filings. Disbursements can often add up — ask your lawyer to estimate how much they will be.

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With more information

The Law Society of BC website includes information on lawyers’ fees, including common billing practices, contingency fees, fee disputes, and the Law Society Fee Mediation Program.

Web: lawsociety.bc.ca
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