Law Society Contingency Fee Agreement

A contingency fee agreement is a contract between a lawyer and their client that outlines how the lawyer will be compensated for their services. In a contingency fee agreement, the lawyer only receives payment if the case is successful, typically receiving a portion of the settlement or judgment awarded to the client.

The Law Society of Ontario sets out guidelines that Ontario lawyers must follow regarding contingency fee agreements. These guidelines are designed to protect the client`s interests and ensure that the lawyer is being fair and transparent about their fees.

One of the most important aspects of the Law Society`s guidelines is that the percentage that the lawyer receives in contingency fees cannot exceed a certain amount. This amount varies depending on the type of case and the amount of the settlement or judgment. For example, in personal injury cases, the lawyer`s contingency fee cannot exceed 33.3% of the amount awarded to the client.

The guidelines also require that the contingency fee agreement be in writing and signed by both the lawyer and the client. The agreement must outline the lawyer`s fee, as well as any additional costs that the client may be responsible for, such as court filing fees or expert witness fees.

Additionally, the agreement must include a statement that the client has the right to seek independent legal advice before signing the agreement. This ensures that the client fully understands the terms of the agreement and the potential costs involved in their case.

Finally, the Law Society`s guidelines require that the lawyer keep detailed records of their time and expenses related to the case. This is important for both the client and the lawyer, as it allows the client to see how the lawyer`s fees are being calculated and gives the lawyer a clear record of their work on the case.

In summary, a contingency fee agreement is a useful option for clients who may not have the financial resources to pay for legal services upfront. However, it is important to ensure that the agreement is fair and transparent, with clear guidelines set out by the Law Society of Ontario. By following these guidelines, lawyers can ensure that they are providing their clients with the best representation possible while also protecting their own interests.