CanLaw

CONTINGENCY FEE ARRANGEMENTS

NO WIN NO PAY WHAT DOES THAT REALLY MEAN?

Contingency fee arrangements allow lawyers and their clients to agree that the lawyer will be paid only in the event of success.

What Are Contingency Fees?

 

Contingency fee arrangements tie a lawyer's fee to the outcome of a case.

If the client wins the case, the client pays his or her lawyer a percentage or other agreed-upon portion of the settlement.

If a client loses, the client doesn't pay - the lawyer accepts the risk of not being paid when taking a case on a contingent basis. Such arrangements need to be discussed between you and your lawyer.

Contingency fees can prevent prohibitive upfront costs and allow for greater access to justice, particularly for middle class individuals who cannot afford a lawyer and do not qualify for legal aid.

 

 

Generally the Contingency Fee Rules in Canada:

  • Require all contingency fee agreements to be made in writing;
  • Prohibit contingency fees in criminal, quasi-criminal and family law matters;
  • Precludes lawyers from collecting both the pre-determined contingency fee and legal costs, unless approved by a judge;
  • Allows client to collect full payment for an award of costs, even if it exceeds the amount payable under a contingency fee agreement, if the award is used to pay the client's solicitor;
  • Prescribes a maximum percentage that can be charged as a contingency fee; and
  • Allows the courts to review contingency fee contracts and to endorse negotiated fees above the prescribed standards where it is fair to do so.
Directory and Index for all of CanLaw

CanLaw is the national lawyer referral service for those requiring  lawyers or legal assistance or related services for any reason whatsoever, anywhere in Canada

CanLaw ask a lawyer