Are you considering hiring a lawyer? Here are some things to think about before you do.
Costs and Billing
It is important to understand that not every lawyer bills the same way. The most common billing arrangements are: (i) per hour billing—where the lawyer bills you in tenths of an hour at their hourly rate; (ii) flat fee—where you pay a set amount regardless of how long the lawyer spends on your file; or (iii) contingency—where you pay little or sometimes nothing up front, provided that the lawyer takes a portion of your settlement or court award.
Extra costs (such as disbursements and other charges) may also be charged in addition to the legal fee. Disbursements are expenses that the lawyer pays on your behalf—for example, court filing fees, couriers, travel expenses, and government filing and search charges. Other charges often include charges for staff time, word processing, and in-house photocopying and printing.
You should always feel comfortable asking your lawyer to explain how these costs will be charged. Also, keep in mind that in British Columbia, all legal fees are subject to GST and PST.
Legal retainer
Some lawyers may ask clients to sign a retainer agreement (sometimes called an engagement letter) at the start of a file. The purpose of the retainer agreement is to set out the relationship between you (the client) and the lawyer. A typical retainer agreement may cover things like:
- fees, hourly rates and billing;
- description of the services the lawyer will provide for you (and what services they will not be providing);
- how to terminate the retainer; and
- communications between the lawyer and client.
A retainer agreement is a binding contract between you and the lawyer—it is always appropriate to ask about anything you do not understand or that makes you uncomfortable and clarify any questions you have before signing.
Initial consultation
Usually the first step of hiring a lawyer is usually to schedule a consultation with the lawyer to discuss your legal issue in greater detail. Keep in mind that there may be a cost for this first consultation.
After discussing your matter with the lawyer, they will likely have the opportunity to give you some preliminary advice and discuss options towards solving your legal issue. At the consultation, you will also have a chance to ask questions and discuss the proposed fees for your matter.
After the consultation, you can decide if you want to hire the lawyer, at which point you will likely be asked to sign a retainer agreement. If the lawyer agrees, any further work that the lawyer does for you will be billed as per the terms of the agreement.
Once you hire a lawyer, you may wish to read our tips on minimizing your legal bill here.
