O. Reg. 836/21: CONTINGENCY FEE AGREEMENTS

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ontario regulation 836/21

made under the

Solicitors Act

Made: December 9, 2021
Filed: December 10, 2021
Published on e-Laws: December 10, 2021
Printed in The Ontario Gazette: December 25, 2021

Amending O. Reg. 563/20

(CONTINGENCY FEE AGREEMENTS)

1. Section 7 of Ontario Regulation 563/20 is revoked and the following substituted:

Agreement form, terms

7. (1) A contingency fee agreement for legal services to be provided wholly or partly in exchange for a percentage or proportion of the amount or the value of the property recovered under an award or settlement shall be in the form titled “Standard Form Contingency Fee Agreement”, dated November 18, 2021, and published by and available on the website of the Law Society of Ontario.

(2) In the case of a contingency fee agreement to which subsection (1) does not apply, the solicitor shall ensure that the agreement includes the following:

1.  A statement that sets out the method by which the fee is to be determined.

2.  A statement that a solicitor for a client who is a claimant shall not recover more in fees under a contingency fee agreement than the amount recovered by the client under an award or settlement from the party or parties against whom the claim was made, including any costs but excluding disbursements and taxes.

3.  A statement in respect of disbursements and taxes, including the HST payable on the solicitor’s fees, that indicates that if the client is responsible for the payment of disbursements or taxes and the solicitor pays the disbursements or taxes during the course of the matter, the solicitor is entitled to be reimbursed for those payments, subject to section 13 of the Legal Aid Services Act, 2020, as a first charge on any amount recovered under an award or settlement of the matter.

4.  A statement that explains costs and the awarding of costs and that indicates that a client is responsible for paying any costs contribution or award, on a partial indemnity or substantial indemnity basis, if the client is the party liable to pay costs.

5.  A statement that informs the client of the client’s right to ask the Superior Court of Justice to assess and approve of the solicitor’s bill, and that includes the applicable timelines for asking for the assessment set out under section 5 or clause 28.1 (11) (a) of the Act, as the case may be.

6.  If the client is a party under disability, as defined in the Rules of Civil Procedure, who is represented by a litigation guardian, a statement that the contingency fee agreement either must be approved by a judge before the agreement is finalized or must be reviewed as part of the motion or application for approval of a settlement or a consent judgment under rule 7.08 of the Rules of Civil Procedure.

7.  A statement that outlines when and how the client or the solicitor may terminate the contingency fee agreement, the consequences of the termination for each of them and the manner in which the solicitor’s fee is to be determined in the event that the agreement is terminated.

8.  A statement that informs the client that the client retains the right to make all critical decisions regarding the conduct of the matter.

(3) Subsections (1) and (2) do not apply if,

(a)  either the client or any person or entity responsible for the payment of the client’s legal fees in the matter that is the subject of the agreement is an organization that, together with any affiliates, members of the same joint venture or any other related persons or entities,

(i)  employs more than 25 individuals,

(ii)  employs a lawyer on a full-time basis, or

(iii)  has assets or gross annual revenues that exceed $10 million; or

(b)  a court has approved the agreement or the contingency fee set out in the agreement.

Commencement

2. This Regulation comes into force on the later of January 1, 2022 and the day this Regulation is filed.  

 

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