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Friday, 16 October 2009 00:00
Alona Mercado     Lawyers: fact and fiction

L.A. Law, Ally McBeal, Boston Legal, The Firm, Runaway Jury, television shows, books and movies – our society is saturated with legal jargon, entertainment that features the law, articles and books all talking about various legal issues. As a result, many people have a preconceived notion about the law – a notion that is often wrong.

When people ask me what I do as a lawyer, I am often asked if I spend all my time arguing cases in front of a judge like the lawyers on Boston Legal. Or if they sue someone can they receive a large settlement just like the people did in a famous movie.

I have found that people’s perceptions about the law are often coloured by television and Hollywood. In Canada, our legal system is based on the British Common Law system. Under most circumstances, when lawyers appear before a judge they refer to them as “My Lord” or “My Lady” and not “Your Honour.” Lawyers also have to appear in legal robes for certain types of appearances such as trials and appeals. And in terms of settlements or judgements handed out by Canadian courts, the amounts are far more modest than those of our American cousins.

Not all lawyers do the same type of work. While there are many specialties, there are generally three types of lawyers who practise in firms – the litigator (or barrister), the solicitor and the general practitioner. Litigators are lawyers who specialize in courtroom work. These lawyers are the ones who will initiate or defend court actions on behalf of their clients. Solicitors are lawyers who typically specialize in corporate and commercial work. Solicitors assist clients with setting up their businesses, buying, selling or refinancing their homes, preparing wills, powers of attorney and health care directives, and administering estates. The general practitioner does both barrister and solicitor work.

So, when you approach a lawyer to assist you with your situation, you need to make sure you approach the right kind of lawyer. After all, if you had a heart condition you would consult a cardiologist and not a neurologist. Similarly, if you are seeking a divorce and custody of your kids, you need a family law lawyer, not a wills and estate lawyer.

The retainer

Once you’ve approached the right kind of lawyer, there are a few issues you should be aware of regarding legal fees. The first issue is the retainer. A retainer is a monetary amount that you give to the lawyer before they begin working on your file. This retainer is ultimately applied towards your Statement of Account.

In essence, a retainer is like a down payment toward your final bill. It is also a form of security for the lawyer. Think of it from our point of view. A complete stranger walks into our office and asks us to perform a service for them. What is our guaranty that this client will pay our bill after we’ve already given them what they needed? For our community there is a sense of nakakahiya if we don’t pay a bill. However, I can assure you that there are people out there from every community who have no problem ignoring a bill. When this happens, the firm or lawyer has the option of suing the delinquent client or just writing off the bill. If the latter happens, the individual lawyer who performed the legal services is not paid.

The legal fee

The next issue is the legal fee itself. Some types of legal services can be offered on a flat fee basis. However, most legal services are charged based on an hourly rate. When services are charged on an hourly basis, any and all time spent by the lawyer on the file is considered “billable time.” Any time you call, e-mail or meet with your lawyer about your file, this is billable time. Furthermore, all the time spent by the lawyer researching issues raised by your file, all the time spent drafting letters and documents, talking to or meeting with opposing counsel, government officials or other relevant individuals, and all the time spent preparing for or appearing in court or meetings are all billable time.

Disbursements

Then there are disbursements. These are out of pocket expenses for the firm. These typically include photocopying and faxing fees, search fees (i.e. taxes, utilities and land titles fees), courier fees and court filing fees. The firm will typically pay for these fees first and will be reimbursed by the client.

Finally, in my experience, the most common question I hear after quoting a fee is “Napakamahal. Wala bang discount?” or “Lawyer #1 said he’d only charge me ‘X’ amount.” To this I can only say that legal fees are usually based on the experience of the lawyer. The more experienced the lawyer, the more expensive the hourly rate. Also legal quotes usually do not include the disbursements and applicable taxes. When making a decision between Lawyer #1 or Lawyer #2, ask if the quote is just for legal fees or if it is all-inclusive. All-inclusive quotes are very rare.

The content of this article is not intended as legal advice and is for information purposes only. Should you require legal advice on a specific issue relating to the contents of this article, please seek the services of a legal professional.

Alona C. Mercado is a lawyer practicing in Winnipeg with the law firm of MONK GOODWIN LLP. She was called to the Manitoba Bar in 1999 and the Ontario Bar in 2003. Her preferred areas of practice include wills and estates, committees, real estate, and immigration law. Alona can be reached at (204) 956-1060 ext. 233 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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