How Much Does a Lawsuit Cost

It is very difficult to predict how much it will cost you to prosecute or defend a lawsuit. The one significant variable which cannot be controlled is the other party and the degree to which that party is prepared to accommodate your position and co-operate in order to resolve the matter.

In any event, you are entitled to know how legal fees are calculated in relation to litigation matters.

Principles

The rules of professional conduct established by the Law Society of Upper Canada and the Courts provide that a fair and reasonable legal fee in any given lawsuit will depend upon and reflect such matters as:

(a) The time and effort required and spent;
(b) The difficulty and importance of the matter;
(c) Whether special skill or service has been required and provided;
(d) The amount involved or the value of the subject matter;
(e) The results obtained;
(f) Fees authorized by statute or regulation or a suggested fee schedule;
(g) Such other special circumstances as loss of other employment, uncertainty or reward, and urgency or special complexity.

Practice at Scarfone Hawkins LLP

In most cases, the practice of our firm in litigation matters is to calculate fees by multiplying the number of hours spent working on a matter by a fixed hourly fee.

Hourly rates vary depending on the seniority and experience of the lawyer involved. Typically, hourly rates vary from $200.00 for a junior lawyer to $600.00 for senior counsel.

Lawsuits often take several years to resolve and hourly rates maybe adjusted periodically to reflect such factors as inflation, experience, etc. The practice of our firm is to render interim bills or accounts on a regular basis covering work performed to the time of the interim account.

Some lawsuits are handled on a contingency fee basis which means that the legal fees is typically a percentage of the total recovery on behalf of a plaintiff in a particular case. The percentage charged varies from case-to-case is typically no less than 25% and can be up to as high as 40% depending on the case and the specific circumstances involved. Some cases are handled on a blended arrangement involving payment of a reduced hourly rate up to a specific amount with a contingency fee payment as well.

Expenses or disbursements incurred on your behalf during the course of a lawsuit, such as photocopying, long distance charges, amounts paid to the Court for filing fees, amounts paid to process servers to serve documents, amounts paid to experts for opinion letters, etc. are, of course, charged in addition to our professional fee.
Retainer

A retainer is a cash advance paid by the client once the solicitor-client relationship is established.
The retainer is paid to the law firm, in trust, and is drawn upon for fees and disbursements. Once the initial retainer is exhausted ,a further retainer is usual required to be applied as against future fees and disbursements.

A retainer is almost always required in litigation matters.

Retainer requirements can vary from $500.00 for a minor matter involving a Small Claims Court claim to several thousand dollars or more depending on the complexity and size of the case.

Payment of Your Costs by the Other Party

If you win a lawsuit, usually the Court will order the losing party to pay part of the legal cost incurred. Rarely is the losing party ordered to pay all costs. The amount the losing party must pay is calculated according to a scale determined by the Court.

Remember that more than 90 percent of all lawsuits are settled without going to Trial. When a settlement is negotiated, we attempt to factor in some payment of costs by the other party.

Should a matter actually proceed through to Trial, and you are successful, the other side will typically be required to make payment of costs, however, the costs paid are usually in the range of approximately one-half to two-thirds of your actual legal costs. You as client are responsible for the remainder.

If you are unsuccessful in a lawsuit, you will likely be held responsible for payment of costs of the other party at approximately the same amount. You will still be responsible for payment of our accounts.

DAVID THOMPSON
905-523-1333
Fax: 905-523-5878
Email: thompson@shlaw.ca