Q: I am in a dispute with my former lawyer. He did a good enough job but charged more than what was quoted and more than I think was reasonable. How do I resolve this matter?
A: This is not as difficult as you may think. While disputes over fees are not common, they are not so rare that this is too difficult to resolve.
First, did you sign a retainer agreement or engagement letter with your lawyer?
Many do this at the beginning of the matter, especially in legal matters proceeding to court. It’s a good idea because it sets out the rights and obligations of both lawyer and client in writing. It usually covers items such as fees, how you will be charged and what happens in the event of a dispute. If you signed such a document, read it because your rights will likely be governed by this contract.
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Next, understand how you were billed. Most lawyers’ billings fall into three broad categories. Sometimes a flat fee arrangement is used. This means that to do certain work for you, the lawyer will charge a predetermined amount. An example might be to charge a set sum for defending a drinking and driving charge. If this is your deal, then that flat fee cannot be exceeded unless the contract makes provision for this.
Another method of billing is a contingency or percentage arrangement. For example, if you are injured and pursuing money to compensate for those injuries, often a lawyer will take a percentage of what you receive. This percentage may rise depending on how much work is involved and how close to trial you get. Contingency agreements should be in writing and generally provide that you will pay the percentage plus any applicable taxes, plus any disbursements (out-of-pocket expenses) your lawyer incurs on your behalf. Again, your contract governs the precise nature of your deal.
The last common billing practice is the hourly rate. Almost every lawyer has established an hourly rate, which varies depending on experience and skill. You should always find out what the rates are at the firm you engage. The lawyer keeps track of his time and multiplies that by the hourly rate to arrive at your bill. Most retainer agreements set out what the rates are.
If you still feel you have not been fairly dealt with, talk to the lawyer you hired or to a more senior member of the firm. Get a full explanation of how you were charged, what work was done and how the bill was calculated. Quite often an open and candid discussion will resolve most concerns and the dispute is dealt with in a reasonable fashion without hard feelings on either side.
If you are still unhappy, there is another recourse. This will vary from province to province, but lawyers’ accounts are generally subject to review. While law societies govern lawyers’ conduct, they do not become engaged in fee disputes unless some other misconduct is involved.
In most provinces a client can have the lawyer’s account reviewed by an impartial official, often a registrar or clerk of the court. That official meets with you and the lawyer together and the bill is reviewed, item by item, to determine its reasonableness. Either side then has a right to appeal the court official’s decision to a judge.
This process is called by different terms, including assessment and taxation. It is a straightforward, quick and easy process, and you probably will not have to hire another lawyer to guide you through it although you are free to do so.
Communication with your lawyer during your case and when the bill
is received is essential to a proper professional relationship. If a bill bothers you, let him know when you receive it and get an explanation. As a client you have rights and should not be afraid to assert them.
Rick Danyliuk is a practising lawyer in Saskatoon with McDougall Gauley LLP. He also has experience in 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.
