Thursday, 07 June 2012 11:00

The Cost of Litigation in Ontario - Canadian Lawyer Magazine Fee Survey

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The 2012 Canadian Lawyer Legal Fee Survey was released a few days ago (here's the cover article - http://www.canadianlawyermag.com/images/stories/pdfs/Surveys/2012/legalfeessurvey2012.pdf - the link to the more detailed numbers is at the bottom of the article).  As someone who recently left the world of big law firms to open up a smaller boutique firm, this is a useful opportunity to see how my new (lower) rates stack up against the rest of the province and country. 

Looking at the Ontario fee ranges for civil litigation, the legal fee survey shows:

  • The cost of taking a civil action through trial (note that most civil matters are settled before trial) range from an average of $30,623 for a 2-day trial, $58,766 for a 5-day trial and $85,025 for a 7-day trial.
  • The average hourly rates for Ontario lawyers range from $243 for newly called lawyers to $438 for lawyers called around 1992.

These will also be somewhat higher in Toronto, since lawyers outside Toronto (who typically charge less than those in Toronto, partly due to the much lower overhead costs) will be lowering the provincial average somewhat.

So how do our fees stack up (cue shameless self promotion here)?  I'm happy to say that they compare well against the average. The hourly rate we charge is less than the average for lawyers of the same seniority.  If you use our flat rate option, and look at things from a plaintiff's perspective, things also look good:

  • For a 2-day trial (assuming a half-day of examinations for discovery prior to trial), the total flat rate will typically be $29,500.  This is less than the provincial average of $30,623, even before accounting for the higher costs in Toronto.
  • For a 5-day trial (assuming 2 days of examinations for discovery prior to trial), the total flat rate will typically be $50,500.  This is less than the provincial average of $58,766.
  • For a 7-day trial (assuming 3 days of examinations for discovery prior to trial), the total flat rate will typically be $64,500.  This is much less than the provincial average of $85,025.

So not only are you paying less than average (even before accounting for the higher rates in Toronto versus the rest of the province), but you also (a) have the flat-rate benefit of knowing in advance what fees you will be paying (as compared to an hourly rate agreement, where unexpected turns may cause the total cost to skyrocket above what was budgeted), and (b) have the advantage of an experienced lawyer who has dedicated his entire career to nothing but litigation, and was trained by some of the best in a large firm setting.

Read 1157 times Last modified on Friday, 06 July 2012 14:02

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