This article was loaned to me by the Law Society of Alberta. Rather than
re-writing an article on this topic the Law Society of Alberta graciously
allowed me to use this article. I am sure you will find it useful when dealing
with your lawyer on the issue of legal fees.
Some people avoid going to a 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.
When you hire a lawyer, you are buying:
1. Experience
2. Skill
3. Time
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.
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 property sale, an incorporation, or an impaired driving offence, 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 - Many times 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 beha1f 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, your lawyer does not receive a fee. You may, however, be responsible to pay disbursements and costs depending on your agreement with the lawyer.
Lump Sum Fee - Some services don't fit conveniently into any of the above categories. In these situations, the lawyer and the client may be 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.
In deciding what fee, rate or percentage to charge, your lawyer will take into account the following factors:
. The extent and character of the services to be rendered.
. The labour, time, and difficulty involved.
. The character and importance of the matter.
. The amount of money or value of property involved.
. The results achieved.
Retainer - When first discussing your case with your 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 withdraw payments from your account accordingly.
Disbursements - These are out-of-pocket expenses, such as court filing fees or expert reports, which the lawyer pays on your behalf. You are responsible for them and, unless ]hey 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 lawyers 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 of your own lawyers fees and disbursements, 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.
During the first appointment with your 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 the 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 or time consuming case, where you received only an estimate of the legal fees, you should discuss frequently with your lawyer the costs at all stages of the proceedings.
Since you are buying your lawyer's time, the less you use the less it will cost. Here are some tips:
Get all your papers and documents together, and put them in order.
Write out a chronology of events.
Note the names and addresses of witnesses.
Write out the issues upon which you want advice.
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.
Don't make unnecessary phone calls to his or her office
Consider writing your lawyer instead of calling wherever possible, This provides written record of your dialogue.
If you must call, consider asking your lawyer's secretary to help you as a first line of information to reduce the time you must spend talking to your lawyer.
Be realistic about matters in dispute. For example, don't spend $500.00 on legal fees to recover a $200.00 T.V.
If you believe your 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 Court of Queen's Bench. Explain why you are calling and they will refer you to the person who does an independent review of accounts. (This review is called a "taxation".) Normally, you must have the bill taxed (reviewed) within one year of the date you received it, or within six months from the date you paid it.
This article is intended to provide general information only. It is not intended to replace legal or other expert advice. When you have a legal problem it is best to consult a lawyer.
The Law Society's principle duty is to serve and protect the public interest. A self governing association of all practising lawyers in the province, its authority comes from the Legal Profession Act of Alberta. The Legislature has respected the fundamental democratic tradition that the legal profession should be independent of government and should regulate itself.
Every two years Alberta lawyers elect 20 of their members to serve as Benchers. The Benchers act as a board of directors who meet regularly and serve without remuneration. The Law Society also has three lay Benchers (non-lawyers) who are appointed by the Attorney-General. The lay Benchers are fully participating Benchers who help open the working of the profession to public scrutiny.
The Law Society sets standards for admission to the legal profession and the practice of law. It also works with the province to provide Legal Aid to the needy and operate a Lawyer Referral Service to assist people in finding a lawyer. The Law Society is also vigilant in protecting the public against unqualified persons practising law.
The Law Society is not normally involved in the regulation of lawyer;s fees since clients who dispute the fairness of a legal fee may apply for an independent fee review to the Clerks of the Court.
The Law Society's services and activities are funded entirely by Alberta lawyers.
