Paying a Lawyer

Factors that affect legal fees include things like:

• the experience of the lawyer
• the amount of time required
• the complexity of the matter
• the amount of money or property that is involved
• whether or not the matter goes to court

Under the Code of Professional Conduct, which governs lawyers, all fees and disbursements must be fair and reasonable. They must also be billed to the client in a timely fashion. Lawyers must also charge taxes on legal fees.

If you have received legal services, you may not understand an item on your legal bill or feel overcharged. In this case, you should go back to the lawyer and ask for an explanation.

It is possible that a lawyer will ask for a retainer before doing any legal work. This is common practice in the legal profession. Money that you give to a lawyer in advance must be placed in a trust account. The lawyer may then use money in the trust account as payment toward fees or disbursements owing. If there is money left in the trust account after the matter is complete and all fees are paid, it is returned to the client.

In addition to legal fees, a lawyer's bill will typically include disbursements. Disbursements are expenses that must be paid in the course of dealing with the matter at hand. Disbursements may include, for example:

• long-distance phone calls that the lawyer must make
• the cost of filing documents with the court
• printing and photocopying costs
• courier costs

Lawyers may charge an hourly rate. Hourly rates will vary from lawyer to lawyer depending on several factors. The lawyer's experience and the complexity of the legal matter may alter an hourly rate. Office overhead and the amount other local lawyers charge may also affect hourly rates.

It may not be possible for a lawyer to estimate how many hours it will take to deal with the matter at hand. Many factors can be out of their control. However, lawyers must track and record their time. If you are paying your lawyer an hourly rate, you may want to discuss how often you will be billed and how detailed the bill will be. This can help you keep on top of your legal costs and how your matter is progressing.

For some transactions, lawyers may choose to charge on a fee-for-service basis rather than an hourly rate. This is sometimes called a fixed or flat rate fee. Matters such as land transactions, simple Will preparations and debt collections are often billed in this fashion. When determining their fee for legal work in these areas, lawyers may base their fee on a percentage of the value of the property or debt.

There are times when a lawyer will agree to work on a contingency basis. This means that instead of charging on an hourly basis, the lawyer will take a percentage of the amount you receive from your case. This type of agreement is sometimes made when a client would not otherwise be able to afford to pay a lawyer. It is often used for personal injury and medical malpractice cases.

Under this arrangement, lawyers generally agree to take 20-50% of any money that is awarded to their client. If the client is not awarded any money, the lawyer will not receive any legal fees. The client will usually still be responsible for paying any disbursements, however. Contingency agreements must be reasonable and set out in a written agreement. Both the client and the lawyer must sign the agreement.

Lawyers keep close track of the time spent on each matter and should be able to tell you the precise reason for the cost. If you are still not satisfied, you may want to have your bill assessed. This means asking a court official to go over the bill to see if the charges are appropriate.

In Saskatchewan, the law states that an application to have the bill assessed must be made to the court within 30 days after delivery of the bill. Under special circumstances, the court may waive this limitation. An assessment package, including FAQs and forms, is available from the Law Society of Saskatchewan.