Legal fees have always been confusing. Thus, the purpose of this Xombyte is to explain the most common legal fee arrangements in Canada as well as factors that affect fees.

Most Common Legal Fee Arrangements

Below are the most common fee arrangements and the types of costs you might encounter when dealing with a lawyer:

Hourly Fee - A lawyer bills a fixed rate per hour for all work done. The fee could range between $100 and $300+ per hour, depending on speciality expertise, experience etc.

Fixed Fee - If you hire a lawyer to provide a routine service, the lawyer may be able to quote a flat fee, regardless of how much work might be involved. For example, a simple will may cost from $200 to $300.

Percentage Fee - Sometimes fees are calculated as a percentage of the value of the subject matter. This approach is often used when probating an estate. Most provinces have legislation that limits the maximum percentage that can be charged, regardless of time spent by the lawyer.

Contingency Fee - Many provinces allow lawyers to charge on a contingency fee basis, that is, for a percentage of the total amount awarded if the case is won. This is negotiable, but can vary from 25% to 50% depending on the nature of what is being done. For example, say that you have a strong case, but don't have the funds to pay for a lawyer and his/her legal services. Your lawyer may agree to act for you and charge a percentage of the amount that you eventually receive, either at trial or settlement. If you lose, the lawyer gets nothing for the time spent. However, you would be responsible for paying the lawyer's disbursements.

Factors that Affect Legal Fees

Below are the most common factors that affect legal fees:

• The lawyer's degree of specialization in the specific legal area
• The number of years that the lawyer has been practicing law
• The amount of competition in your area for legal services
• The amount of time the lawyer spends on your behalf
• The legal complexity of the matter dealt with
• The monetary value of the matter at issue
• The lawyer's degree of responsibility
• The importance of the matter to the client
• The degree of difficulty in dealing with the issue at hand
• The lawyer's degree of skill and competence
• The results the lawyer obtains on the client's behalf
• The client's ability to pay

Hope this insight has helped clear the air. If you're ever looking for a lawyer in the Toronto-area, please visit www.torontolawyerhub.com , which offers a complete listing of legal professionals.

Cheers!