The cost of hiring a lawyer should never be a mystery. At TZ LAW, we are committed to complete transparency, ensuring you understand exactly how legal fees are structured and what to expect. We believe an informed client is an empowered one.
This guide explains the different ways legal services are billed in Alberta and British Columbia, how our team at TZ LAW approaches fees, and the flexible options available to you.
How Legal Fees Are Charged
Legal fees are typically charged using one of two primary methods: Contingency Fee or Hourly Rate. The best approach for your case will depend on several factors, including the type of legal issue, its complexity, the potential risks and rewards, and your financial situation. While TZ Law strives to provide Contingency Fee options as much as possible for access to justice, this option is not suitable for all cases. Your lawyer will discuss with you the options for fees during the initial meeting.
At TZ LAW, we are proficient in both hourly and contingency fee arrangements. We will work with you to determine which structure makes the most sense for your unique circumstances.
Contingency Fee Agreements Explained
A contingency fee arrangement means our legal fee is paid only if we successfully resolve your case through a settlement or a court judgment. This model is often summarized by the phrase, “You do not pay unless we win!”
This can be an ideal option if you cannot afford to pay legal fees as the case progresses. It aligns our success directly with yours. We carefully assess every case to determine if a contingency fee is appropriate and ensure you fully understand the potential outcomes before you commit.
What Percentage is a Contingency Fee?
There is no single answer for this. The percentage used in a contingency fee agreement is tailored to the specifics of each case. Factors that influence the percentage include:
- The overall complexity of the legal matter.
- The estimated likelihood of success.
- The level of risk the law firm assumes.
- The anticipated value of the final settlement or award.
- How court costs are handled in a final agreement.
At TZ LAW, we collaborate with our clients to establish a fair and appropriate percentage based on these factors.
Hourly Rate Billing Explained
The most traditional method for billing legal services is by the hour. With this model, you pay for the exact time our legal professionals spend working on your case.
Our lawyers and staff track their time in small increments (often six-minute intervals called “dockets”). Every task is recorded, from a phone call with opposing counsel to drafting a legal document or preparing for a court appearance. We provide detailed invoices that clearly itemize all the work performed on your file so you can see exactly where your money is going.
To keep your costs reasonable, we strategically assign work to the most appropriate member of our team. This means junior lawyers, law clerks, or legal assistants may handle certain tasks at their lower hourly rates, ensuring you receive excellent value.
Other Legal Fee Questions
What is a Retainer?
A retainer is an upfront amount of money a client pays to the law firm. This money is held securely in a special, legally regulated trust account. It is your money, held for you. As we incur legal fees or disbursements on your behalf, we pay our invoices from these trust funds. Any unused portion of the retainer is returned to you at the end of your case.
Retainers are common for hourly rate cases, but even in some contingency fee matters, a smaller retainer may be required to cover anticipated disbursements.
What is a Disbursement?
Disbursements are the out-of-pocket expenses your lawyer pays on your behalf to advance your case. Examples include court filing fees, charges for ordering medical records, fees for expert witness reports, or necessary travel costs. Lawyers are not allowed to profit from these expenses; you are only charged the actual cost that we pay.
Do Lawyers Charge Taxes?
Yes. All legal fees, whether billed hourly or as a contingency, are subject to federal and provincial sales taxes (GST/PST).
Other Billing Methods
Beyond standard hourly and contingency models, other arrangements may be possible, such as:
- Fixed or Flat Fees: A single, agreed-upon price for a well-defined legal service, like preparing a will or a specific contract.
- Staged Fees: Fees are charged in blocks as the case reaches certain milestones or phases.
Our priority at TZ LAW is to find a billing solution that works for you. We encourage an open discussion about your needs and concerns regarding legal fees.
Contact TZ LAW Today
If you are looking for a trusted employment law firm in Alberta and British Columbia, TZ LAW is here to provide clear guidance and effective representation. We believe in building strong client relationships based on transparency and results.
Contact us to schedule your free 15-minute case assessment and learn more about how we can assist you.