Q: I disagreed with my lawyer over his bill. He has suggested that the bill could be taxed. What is taxation?
A: Taxation is a review of a lawyer’s bill to determine if it is fair and reasonable. Usually this review is conducted by the registrar of the Court of Queen’s Bench (called Supreme Court in some provinces) or some other courthouse official.
In F. vs. CP, an Alberta case where the taxation review was appealed to the Court of Queen’s Bench, the judge said that the standard for reviewing the decision is whether the taxing officer’s award is “inordinately high or shockingly low.”
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The taxing officer in that case reduced the lawyer’s bill by approximately $2,600. But F appealed the judgment. F argued that the taxing officer did not give adequate reasons for his decision and that he did not deal with F’s allegations that his lawyer was negligent, incompetent and unprofessional.
The judge upheld the taxing officer’s decision and also set out the following rules for taxation. A taxing officer’s role is to determine whether the fees charged were reasonable; there is no requirement that the taxing officer explain her reasons in detail; except for obvious negligence. It is not a taxing officer’s role to determine if the lawyer was negligent. That role is reserved for a judge.
The judge found no grounds for incompetence or unprofessional con-duct. This case involved a purchase of a condominium and subsequent financial problems.
British Columbia’s Legal Profession Act summarizes the factors to be considered in a taxation application: the complexity, novelty or difficulty of the case; the skill, knowledge and responsibility required of the lawyer; the lawyer’s character and standing in the profession; the amount involved; time spent; whether any agreed upon rate is reasonable; the importance of the matter to the client and the result obtained.
In G. vs. S, a B.C. custody and support case, the registrar indicated the client’s ability to pay should also be considered. At issue was a $4,400 bill. The client’s complaint included that fees had been estimated at $1,500, that there were several adjournments and that excessive time was spent on straightforward matters.
The lawyer conceded that for the client “the results were disappointing.” The taxing officer accepted that the time spent was reasonable and noted that the bill had already been discounted by the lawyer and also that duties had been performed which were not charged for. Nevertheless, the registrar decided that a reasonable fee would be $2,500 and further reduced the photocopying bill by $50.
More information
For a more complete listing of cases, go to www.canlii.org and do an advanced search for “taxation AND lawyer’s bill.”
Generally, there will be costs associated with the taxation and those will fall on the unsuccessful party. In B.C., if the lawyer’s bill is reduced by more than one-sixth, the costs are borne by the lawyer.
The actual technical process for initiating a taxation review is found in the Legal Professions Act and rules of court in each province. These are available on-line along with other provincial statutes and regulations.
In Saskatchewan, from where you write, taxation proceedings must be initiated within 30 days of the bill unless there are special circumstances as determined by a judge. If both the lawyer and client agree to the taxation, they can proceed directly to the court registrar. Otherwise, the party asking for taxation must ask the court to order it. An information kit dealing with taxation is available from the Law Society of Saskatchewan, 306-569-8242, reception@lawsociety.sk.ca or 1100 Ð 2500 Victoria Ave., Regina S4P 3X2.
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.
