Do You Have to Pay a Personal Injury Lawyer Up Front?
 

After a serious injury, many people cannot afford to pay a lawyer by the hour. For this reason, most personal injury lawyers in Ontario use contingency fee arrangements so injured individuals can access legal representation without paying legal fees at the start of the case.

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A contingency fee arrangement means the lawyer’s legal fees depend on the outcome of the claim rather than being billed in advance.

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What Is a Contingency Fee?

 

A contingency fee is a fee arrangement where the lawyer’s legal fees are based on the result of the case. If the claim is successful, legal fees are usually calculated as a percentage of the settlement or court award. If the claim is not successful, legal fees for the lawyer’s time are typically not charged.

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This is why many people hear phrases such as “no win, no fee.” While every agreement is different, the core idea is that legal fees are generally paid only after a successful outcome.

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Contingency fee agreements in Ontario must be set out in writing in a retainer agreement and clearly explain how legal fees and expenses will be handled. They must do so in a manner consistent with the standard form contingency fee agreement mandated by the Law Society of Ontario.

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When Are Legal Fees Paid?

 

In most personal injury claims, legal fees are paid at the end of the case rather than during the process. This may occur when:

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• A settlement is reached
• A claim is resolved through mediation
• A court judgment is obtained after a trial

 

Instead of paying legal fees monthly or hourly, the fee is typically deducted from the amount recovered once the claim is completed.

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What About Disbursements and Case Expenses?

 

In addition to legal fees, personal injury cases often involve expenses known as disbursements. These are costs required to move a claim forward and may include:

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• Medical records and reports
• Expert assessments
• Court filing fees
• Investigation costs

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Depending on the retainer agreement, these expenses may be paid as the case proceeds or may be paid at the end of the case from the settlement or court award. The specific arrangement should always be clearly explained in writing. At our firm, disbursements are charged at the end of the case.

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Are There Any Situations Where I Might Have to Pay Something Up Front?

 

In certain situations, some lawyers may require a client to pay certain case expenses depending on the retainer agreement. However, legal fees for the lawyer’s time are usually not charged up front in contingency fee arrangements.

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It is important to review the retainer agreement carefully so you understand whether any expenses may be required during the case.

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Is a Free Consultation Normal?

 

Many personal injury law firms in Ontario offer a free initial consultation. This allows injured individuals to ask questions, learn about their legal options, and understand how legal fees and expenses would work in their specific situation before deciding whether to proceed.

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Frequently Asked Questions

 

Do personal injury lawyers in Ontario charge legal fees up front?

 

Most do not. Most Ontario personal injury lawyers work on a contingency fee basis, meaning legal fees are typically paid only if the case is successful.

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If my case is not successful, will I owe legal fees?

 

In many contingency fee arrangements, legal fees for the lawyer’s time are not charged if the case is not successful. Case expenses and the specific terms depend on the retainer agreement.

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How are legal fees calculated?

 

Legal fees are often calculated as a percentage of the amount recovered through settlement or trial. Factors that can affect the percentage and structure that a contingency lawyer will accept include: complexity of the case, likelihood of success, and potential size of a successful settlement or verdict.
 

Do I still have to pay other expenses?

Personal injury cases can involve disbursements such as medical records, court filing fees and expert reports. Whether these are paid during the case or at the end depends on the terms of the retainer agreement. At our firm, they are paid at the end of the case.

 

Are contingency fees regulated in Ontario?

 

Yes. The Law Society of Ontario regulates contingency fee agreements. The Law Society mandates that firms utilize a "standard form" Contingency Fee Agreement.
 

Closing Paragraph

 

Understanding how legal fees work can make it easier to decide whether to pursue a personal injury claim. In Ontario, most personal injury lawyers do not charge legal fees up front and instead use contingency fee arrangements so people can access legal help without paying legal fees at the beginning of the case.

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Before signing a retainer agreement, it is important to review the terms carefully and ask questions about how legal fees and case expenses will be managed.

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You can explore more legal topics and answers to common questions in our Resources section.