Everything You Need to Know About Contingency Fee Lawyer Ottawa

Legal fees are a real concern when you are facing a termination, a severance offer or another workplace dispute. Some lawyers offer a contingency fee arrangement for certain kinds of cases. This article explains in general terms what a contingency fee is, what to ask about before you agree to one, and how it differs from other fee arrangements. It is general information, not legal advice.

What is a contingency fee?

In a contingency fee arrangement, the lawyer's fee is a percentage of the amount recovered for you, if anything is recovered. If nothing is recovered, no legal fee is generally payable under that arrangement. This is sometimes described as "no win, no fee," but that shorthand leaves out important details, such as the ones below.

What to ask before you agree

• What percentage will be charged? The agreement should state the percentage, and whether it changes at different stages (for example, if a settlement is reached before or after a lawsuit is started).
• Is the percentage calculated before or after taxes and disbursements? This can change how much you receive.
• Who pays disbursements? Disbursements are out-of-pocket costs such as filing fees, court reporters and expert reports. Ask whether you pay them as they arise, whether they are deducted from any recovery, and what happens if there is no recovery.
• What if you lose in court? A contingency fee arrangement does not necessarily protect you from a costs award in favour of the other side. Ask how that risk is handled.
• What happens if you change lawyers or end the retainer? The agreement should explain how the lawyer will be paid for work already done.
• Is the agreement in writing? In Ontario, contingency fee agreements are regulated and must be in writing. Read it carefully, and ask for a copy.

Other ways lawyers charge

Employment lawyers may also charge by the hour, by a fixed fee for a defined task (such as reviewing a severance package), or by a combination of arrangements. Which one suits you depends on the type of matter, the amount at stake and how much work is likely to be involved.

Is a contingency fee right for my situation?

It depends on the case. A matter that mainly involves reviewing an offer may be better suited to a fixed fee, while a claim that is likely to go through a lawsuit may be handled on a different basis. A lawyer should explain the options, in writing, before you retain them.

Talk to us about fees and your options

Fee arrangements vary by matter, and we will explain how any fees would be calculated before you retain us. Randy Ai Law Office offers a free initial consultation with no obligation. Legal services are provided by lawyers licensed by the Law Society of Ontario. Past results do not guarantee future results; outcomes depend on the facts of each case.