Before entrusting a definite assignment to an attorney, make sure you discuss all the legal and practical aspects of the case and fully agree on its financial terms. In fact, it is crucial that you understand how the legal industry operates when it comes to fees, rates, and costs.
How much will an attorney charge in Québec?
Legal fees encompass all the amounts paid in order to file and manage proceedings before the court. They are generally split in two (2) categories, namely judicial and extrajudicial expenses (the latter being the professional fees invoiced by the party’s attorney). An attorney’s financial compensation is usually based on an hourly rate which will vary according to their experience, the time invested in the case, the nature of the services provided, and the complexity of the proceedings.
More or less half of the attorneys who invoice their services on an hourly basis require 100$ or less an hour, whereas a quarter ask for 250$ or more. Hence, the average hourly rate ranges from 100$ to 300$. Most of the time, the initial consultation (during which the overall cost of your case will be estimated) is held free of charge or at a reduced rate.
Factors which are likely to have an impact on attorney’s rates
Il n’y a pas de directive précise du Barreau du Québec en ce qui concerne le mode de tarification. Chaque avocat peut déterminer, à titre professionnel, ses honoraires en vertu des dispositions du Code de déontologie des avocats. Les enjeux diffèrent selon les méthodes mais, la tarification des services juridiques doit répondre aux devoirs et aux obligations du code.
The Bar of Québec does not impose any specific guidelines when it comes to the rates invoiced by its members – which means that attorneys are free to set fair and reasonable prices in accordance with the duties and obligations defined by the Code of professional conduct of lawyers.
An attorney’s professional fees and costs can vary according to several parameters:
- Overall experience
- Time and efforts invested in the case
- Complexity of the case
- Obligations and liabilities undertaken by the attorney
- Importance of the outcome (from the client’s point of view)
- Nature of the legal services provided
- Specific rates established by government authorities
- Specific skills, expertise, or requirements
- Outcome of the case
- Legal expenses
Legal expenses are costs an attorney pays along the way in order for the case to progress:
- Expert fees
- Stenographers
- Consultation of books or registries
- Travelling
- Parking
The client will be asked to pay both judicial and extra-judicial fees (the former being legal duties determined by government authorities). Once a trial ends, the court will decide which party is responsible for the payment of judicial fees.
Extrajudicial fees, for their part, correspond to the professional fees the attorney and the client have agreed upon.
A detailed service agreement should clearly define the assignment, rates, and payment methods the attorney and the client have agreed to, including:
- Summary of the assignment
- Steps and stages of the proceedings
- Professional fees
- Judicial and extra-judicial costs
- Performance parameters
- Payment methods
How to choose the right attorney
Invoicing methods
Although the hourly rate has firmly established itself as the most common invoicing method in the 80s, it is slowly losing ground to more flexible options. As new legal technologies emerge and websites are able to compare the quotations submitted by law firms, alternative pricing methods (APM) are becoming more and more popular.
In an article entitled « La tarification horaire à l’heure de la réflexion » and published in 2016, the Bar of Québec outlined the most common alternative pricing methods :
- Lump sum: the overall price of the assignment will vary according to performance parameters and to the nature and extent of the services provided.
- Maximum price: professional services are invoiced on an hourly rate basis, being understood and agreed that a set, fixed maximum price cannot be exceeded.
- Project management: the attorney is paid a set, fixed price for a whole project.
- Rate contingent on the outcome: the overall price depends on the success of the case.
- Reserve: amounts of money (such as monthly installments) are paid to the attorney at regular intervals.
- Fixed hourly rate: a fixed and steadfast price is set in advance.
- Added value: the price or rate will depend on what the client believes the services provided are really worth.
- Hybrid: a combination of two (2) or more of the pricing methods described above.
Percentage
The attorney is paid a percentage of the proceeds the client receives at the end of the proceedings. Such a percentage (which usually ranges from 10% to 40%) may vary according to several factors:
- Nature and complexity of the case
- Overall chances of success
- Amounts in play
- Expenses incurred by the client (or the attorney)
An agreement should clearly define what happens if the client ends up getting nothing. It may be agreed that the attorney will be compensated on merit alone, recognized an hourly rate, or paid the costs and expenses they have incurred. Such an agreement usually intervenes when the client is seeking compensation in the form of damages.
Alternative pricing methods often allow indigent or out-of-work citizens (such as individuals who become disabled following an accident) to enforce their rights before the courts. Our team of experts can explain what you must do following a road traffic accident or a work-related accident.
Lump sum
A set, fixed price is set in advance in regards to the management of the whole case (namely from the initial challenge of a ruling to the court’s final and definite decision). The agreement must specify clearly whether or not costs such as printing, copying, expert fees, and travelling expenses are included in the package deal.
In such a scenario, the attorney takes on certain risks:
- Should the case be settled quickly, the pricing method may be lucrative;
- Whenever the case drags on, the attorney may realize that an hourly rate would have been preferable.
In other words, lump sums should be reserved for open-and-shut cases.
Hourly rate
By far the most common pricing method, hourly rate is established at the onset of the case and takes into account the time invested in documentary research, the drafting of proceedings, correspondence, meetings, phone calls, travelling, and appearing in court.
Complex pricing methods
As previously mentioned, the attorney and the client may agree that more than one pricing method will apply to the case. Hybrid pricing is a combination of two (2) or more basic methods (such as a reduced hourly rate and a percentage of the compensation paid to the client), whereas alternative pricing allows for pricing methods to change or overlap along the way.
If need be, you can consult the Centre communautaire juridique du Québec – an initiative of the government of Québec that allows low-income individuals to have their attorney’s professional fees paid on their behalf. Eligibility for legal aid will depend on your overall financial situation and the nature of the legal services you require.
Services compensated by legal aid may be provided by a community lawyer or by a private law firm. If you purchase a legal expenses insurance, the insurer will pay all (or portions of) the professional fees invoiced by your attorney.
Need an attorney?
As a law firm specialized in the management of cases involving the CNESST and the SAAQ, Accident Solution frequently represents its clients before the Administrative labour tribunal (ALT) and the Tribunal administratif du Québec (TAQ).
Our devoted team of experts will manage your case from beginning to end, making sure you receive all the benefits you are entitled to under the Law. We can also help you challenge a ruling by filing a well-written, convincing statement of claim or application for review.
Relying on thirty (30) years of experience, our multi-disciplinary legal team provides services of the highest quality while charging reasonable and proportionate fees. In fact, we may agree on a lump sum, a percentage of proceeds, and even progressive payments.
