Understanding Lawyers’ Fees

The Law Society does not set lawyers’ fees and there is no standard fee for legal services.

Read more: Paying a Lawyer (PLEA)

It is important to discuss fees before hiring a lawyer. Common forms of lawyer fees include:

Contingency Fees: this fee arrangement is common in personal injury claims and class actions. A portion of any financial award or settlement you receive as a result of your legal action is paid to your lawyer. If you have a contingency fee agreement with your lawyer, it has to be in writing and it has to be signed by you. The Law Society has rules as to what must, and must not, be included in a contingency agreement. There are certain types of actions for which lawyers are prohibited from entering into contingency agreements, such as in family property matters. If no money is recovered, the lawyer generally collects no fee for the time spent on your case, although you are usually responsible for disbursements, regardless of outcome.

Disbursement Fees: these are expenses paid for by your lawyer on your behalf such as land titles fees, court filing fees, courier charges, photocopying costs or fees paid for expert reports from people such as doctors, psychologists or engineers. It is common for lawyers to ask clients to provide the money to fund a disbursement before it is incurred, especially in relation to more costly expenses, such as expert reports.

Fixed or Flat Rate Fees: this type of fee may be used for specific transactions such as incorporating a business or purchasing a house. Some lawyers also use a fixed fee for specific types of court appearances such as defending a client on a minor criminal charge or a small claims matter. It is a set amount that you will pay to your lawyer for a particular transaction or service.

Hourly Rate Fees: this type of fee is commonly used by lawyers and hourly rates usually reflect the lawyer’s skill and experience. Senior lawyers often charge more per hour than lawyers who are just starting out in practice. Hourly rates include more than just the time the lawyer spends with a client. Fees can include time spent by your lawyer on the phone, in meetings, doing research, preparing documents, dealing with correspondence from others, appearing in court and other aspects involving your file.

Retainer Fees: this is a sum of money you pay to your lawyer as a deposit for the future services the lawyer will perform for you and the future expenses the lawyer will incur on your behalf. Your lawyer will send you accounts, which will be paid out of the retainer. You may be asked to “refresh” the retainer, meaning to provide a further deposit if the retainer is used up before the matter is concluded. At the conclusion of services, if there is money left from your retainer, your lawyer is required to return it to you.

Taxes: lawyers are required to charge GST and PST on legal fees and GST on all expenses. Some types of expenses may also have PST applied.

Be sure to ask before hiring a lawyer what the fee arrangement will be. Some lawyers may provide alternative fee arrangements that rely on a combination of fee structures or a payment plan.

Your lawyer should provide you with invoices detailing the legal work completed and the disbursements made, for which they are charging you. When and how often you receive invoices, and what level of detail will be included in the invoice, will depend on what you agreed to with the lawyer when you hired them, as well as on the fee structure agreed to.

What if I have a dispute involving lawyer fees?

The Law Society is not able to address complaints or disputes between you and your lawyer regarding the amount of their fees.

If you don’t understand some of the items on your lawyer’s account or if you disagree with the amount, talk it over with your lawyer. Go over the details and ask the lawyer to explain why a particular charge was made. Remember, other than under contingency or fixed fee arrangements, lawyers charge fees and disbursements based on the work done on your behalf, even though you may not be satisfied with the eventual outcome.

Assessment Review

If you and your lawyer cannot resolve your fee disagreement, there is a procedure known as Assessment, where the lawyer’s accounts are reviewed by the registrar of the Court of King’s Bench.

The registrar will review the work done by the lawyer, hear from both the lawyer and the client in an Assessment Hearing, and decide if the work done justifies the fees charged. This may result in an order directing the lawyer to reduce the fee and, if the client has already paid, to reimburse the client.

If your lawyer does not consent to an assessment by the registrar, you may apply to the Court of King’s Bench for an assessment. This application must be made within 30 days of receipt of the account. However, application can be granted at a later date if the court is satisfied that special circumstances exist.

Challenging Contingency Fee Agreements

A contingency fee agreement is an agreement which provides that a lawyer’s payment for services provided to their client depends on whether the client is successful in their legal action. The fee will depend on the outcome of the case and is generally calculated as a percentage of the value of the award or settlement received by the client. The terms of a contingency fee agreement must be reasonable and set out in a written agreement signed by both the lawyer and the client.

Read more: Understanding lawyers’ fees

Where a lawyer and client have signed a contingency fee agreement, the client may apply to the Court of King’s Bench to challenge the reasonableness of the contingency fee agreement as set out in section 64 of The Legal Profession Act, 1990. 

How can I minimize legal costs?

Here are tips to help keep your legal costs down:

Be organized and ready when you meet with your lawyer, whether in person or by telephone.
Be sure that when you make a decision about how you want your lawyer to proceed, you have thought it through carefully. Changing your instructions to your lawyer after they have already begun work on your file can also mean that your lawyer’s account will be higher.
Consider carefully your lawyer’s advice about what you can realistically expect to achieve in relation to what your legal costs may be. You probably do not want to spend $2000 to recover $500.
Consider limited scope legal services, if the option is right for you.
Consider hiring a lawyer if they offer an alternative fee arrangement such as fixed legal fees.

Legal Expense Insurance may be an option with your home or other insurance policies and inquire with your insurance broker in advance. Legal Expense Insurance can provide access to a helpline and coverage for some of the costs related to legal matters.

What if I can’t afford a lawyer?

If you are concerned about affording a lawyer, be sure to talk to prospective lawyers about fee and payment options, including limited scope legal services which can help make legal services more affordable.

If you cannot afford a lawyer, you may be able to find one who is paid through Legal Aid Saskatchewan or through a pro bono program.

Legal Aid

If you qualify, Legal Aid Saskatchewan may be able to help you. Legal Aid Saskatchewan provides legal services in the areas of family and criminal law to low-income individuals. Visit www.legalaid.sk.ca for more information.

Pro Bono Legal Services

Pro bono means professional work undertaken voluntarily and without payment (for free).

Pro Bono Law Saskatchewan provides pro bono legal services to low-income clients throughout the province. Visit www.pblsask.ca for more information.

Community Legal Assistance Services for Saskatoon’s Inner City (CLASSIC) offers pro bono legal services to low-income individuals in Saskatoon. Visit www.classiclaw.ca for more information.

What other resources are available?

Many legal information resources are available for the public. For more information, please visit Public Resources.

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