Q: I received a bill from a lawyer that itemized the services provided but did not specify the cost of each service. The bill lists “May 1, attendance on client” and “May 3, preparing letter to opposing counsel” and other services, but there is no amount for each service. Only a total appears at the end of the list.
How is a client to know what is being charged for each service? If you go to a store or garage you get a bill listing each item and its cost. Why can lawyers bill in this manner?
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A: I agree with you that bills should provide more details. In my informal survey of lawyer acquaintances, many told me that they do list the time spent and cost of each function they performed. The bills I receive from my accountant are similar. As lawyers often charge by the hour, an indication of the time spent on a service would at least help a client determine the cost of each service.
There is no specific requirement that there be a cost listed for each function performed. This form of billing practice was critically commented on by one Saskatchewan judge hearing an appeal of a lawyer’s bill.
The judge noted: “One cannot avoid a measure of nostalgia for the days before computerized billings, when a solicitor’s account would outline what the task was, what was done to achieve it … Mr. T’s bills give no clue as to any of this and while his attendances are fully documented in the sense of their being entered into the computer, it is as though that entry made them necessary, relevant and chargeable without further explanation. … Small wonder too, that lawyers’ bills are seen by the public to be excessive.”
The code of professional conduct for lawyers in Alberta, from where you write, provides that “a lawyer’s fee must not exceed a fair and reasonable amount.” The code also requires lawyers to provide in writing as much information about fees as is practical in the case, including how the fee will be determined. At minimum, a lawyer should be willing to provide explanation of charges upon request.
As a first step, I would recommend you discuss the bill with your lawyer.
If you believe that you have been overcharged or that the bill is unfair, there is a formal review process called taxation. It is carried out by a court official who will consider these factors: time, effort and responsibility by the lawyer; complexity of the case; value of the case and importance to the client; sophistication of the client; lawyer’s degree of skill; results achieved; fees charged by other lawyers; the ability of the client to pay and any estimate of fees given by the lawyer.
Generally, the taxation request must be made within six months of the work being completed or bill rendered, whichever is later. It is common practice for lawyers to demand a retainer to cover fees in advance and deduct their bill from this retainer.
Full details of the procedure involved in taxation, the required forms and points of advice can be found in the publication Taxation of a Lawyer’s Bill prepared by Court of Queen’s Bench taxing officers. It is available by going to www.producer.com and typing “lawyer’s bill” in the go box. Look under Court Services Ð Taxation.
There is a similar process in all provinces, although procedures and filing deadlines vary.
Don Purich is a former practising lawyer who is now involved in publishing, teaching and writing about legal issues. His columns are intended as general advice only. Individuals are encouraged to seek other opinions and/or personal counsel when dealing with legal matters.
