How much do contingency fee lawyers charge in Canada?
Contingency fees for personal injury and civil claims are typically 25-35% of the recovery. Provincial law requires the agreement to be in writing, fair, and reasonable. In Ontario, contingency fee agreements are regulated under the Solicitors Act and cannot exceed the amount that would be charged on an hourly basis in certain cases without court approval.
Is the contingency fee charged on the gross or net amount?
It depends on the written agreement. Some firms charge the percentage on the gross recovery before deducting disbursements; others charge on the net after disbursements. The base matters: on a large disbursement file the difference can be thousands of dollars. Ontario requires clear disclosure of the base.
Do I pay HST on my lawyer's contingency fee?
Yes. HST or GST applies to legal fees in Canada and is added on top of the contingency percentage. On a 30% fee in a 13% HST province, the effective deduction for fees plus tax is about 33.9% of the fee base.
What happens to disbursements if I lose?
Under most contingency agreements the lawyer only collects a fee if you recover. Disbursements (expert reports, filing fees, medical records) are usually advanced by the firm and repaid from the recovery. If you lose, you may still be liable for disbursements and, potentially, the other side's costs; read your agreement carefully.