Contingency Fees in Ontario: What to Ask Before You Agree
A contingency fee means the representative is paid only if you win or recover money, usually as a percentage of what is recovered. It can make a claim possible when you cannot pay up front, but the terms deserve careful reading.
- A contingency fee is tied to the result, often a percentage of the recovery.
- It should be in a written agreement that explains the percentage, what it is calculated on, and what happens to costs and disbursements.
- Contingency fees are restricted or not allowed in some kinds of matters, such as certain family and criminal matters.
- Both lawyers and paralegals are regulated by the Law Society of Ontario. Ask your representative to show you the rule that applies.
How it compares
- Hourly: you pay for the time spent, win or lose.
- Fixed fee: a set price for a defined service, known in advance.
- Contingency: the fee depends on the outcome, so there is no fee if there is no recovery, but the percentage can be a significant share of the result.
- Hybrid: some arrangements mix a reduced fixed or hourly fee with a smaller contingency.
What the agreement should say
- The percentage, and whether it is calculated before or after costs and taxes.
- How disbursements, such as filing and expert fees, are paid, and who pays if you lose.
- What happens to costs awarded by the court, and who keeps them.
- What happens if you settle early, drop the claim or end the relationship.
- How HST is treated.
- That the agreement is in writing and you have a copy.
Questions worth asking
- What is my realistic range of recovery, and what is the likelihood of getting nothing?
- Would a fixed fee or hourly arrangement cost less in this case?
- What if a court orders me to pay the other side's costs?
- Who decides whether to accept a settlement offer?
Where it may not be available
The rules of conduct that apply to lawyers and to paralegals limit or prohibit contingency arrangements in certain areas, and they require that the fee be reasonable. Check with your representative which rule applies to your matter, and ask that the agreement identify it.
If you have a concern
If you think a fee is unfair or you did not understand the agreement, raise it in writing first. Lawyers and paralegals can be asked to have their accounts reviewed, and complaints about conduct can be made to the Law Society of Ontario.
Common questions
Is a contingency fee the same as no win, no fee?
Often described that way, but there can still be costs, such as disbursements or costs ordered against you. Read what is covered.
Can the percentage be negotiated?
Often yes, especially for larger claims or where the case looks strong. Compare more than one offer.
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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