CONTENTS

1. Written contingency fee agreement
2. Contents of contingency fee agreements, general
3. Contents of contingency fee agreements, litigious matters
4. Matters not to be included in contingency fee agreements
5. Contingency fee excludes costs and disbursements
6. Contingency fee not to exceed damages
7. Settlement or judgment funds to be held in trust
8. Disbursements and taxes
9. Assessment of contingency fee agreement
10. Commencement

Written contingency fee agreement

1. (1) A written contingency fee agreement,
(a) shall be entitled "Contingency Fee Retainer Agreement";
(b) shall be dated; and
(c) shall be signed by the client and the solicitor with each of their signatures being verified by a witness.

(2) The solicitor shall provide an executed copy of the contingency fee agreement to the client and shall retain a copy of the agreement.

Contents of contingency fee agreements, general

2. A solicitor who is a party to a contingency fee agreement shall ensure that the agreement includes the following:
1. The name, address and telephone number of the solicitor and of the client.
2. A statement of the basic type and nature of the matter in respect of which the solicitor is providing services to the client.
3. A statement that indicates,
i. that the client and the solicitor have discussed options for retaining the solicitor other than by way of a contingency fee agreement, including an hourly-rate retainer,
ii. that the client has been advised that hourly rates may vary among solicitors and that the client can speak with other solicitors to compare rates,
iii. that the client has chosen to retain the solicitor by way of a contingency fee agreement, and
iv. that the client understands that all usual protections and controls on retainers between a solicitor and client, as defined by the Law Society of Upper Canada and the common law, apply to the contingency fee agreement.

4. A statement that explains the contingency upon which the fee is to be paid to the solicitor.

5. A statement that sets out the method by which the fee is to be determined and, if the method of determination is as a percentage of the amount recovered, a statement that explains that for the purpose of calculating the fee the amount of recovery excludes any amount awarded or agreed to that is separately specified as being in respect of costs and disbursements.

6. A simple example that shows how the contingency fee is calculated.

7. A statement that outlines how the contingency fee will be calculated, if recovery is by way of a structured settlement.

8. A statement that informs the client of their right to ask the Superior Court of Justice to review and approve of the solicitor's bill and that includes the applicable timelines for asking for the review.

9. A statement that outlines when and how the client or the solicitor may terminate the contingency fee agreement and the consequences of the termination for each of them.

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

Contents of contingency fee agreements, litigious matters

3. In addition to the requirements set out in section 2, a solicitor who is a party to a contingency fee agreement made in respect of a litigious matter shall ensure that the agreement includes the following:

1. If the client is a plaintiff, a statement that the solicitor shall not recover more in fees than the client recovers as damages or receives by way of settlement.

2. A statement in respect of disbursements and taxes, including the GST payable on the solicitor's fees, that indicates,
i. whether the client is responsible for the payment of disbursements or taxes and, if the client is responsible for the payment of disbursements, a general description of disbursements likely to be incurred, other than relatively minor disbursements, and
ii. 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 as a first charge on any funds received as a result of a judgment or settlement of the matter.

3. A statement that explains costs and the awarding of costs and that indicates,
i. that, unless otherwise ordered by a judge, a client is entitled to receive any costs contribution or award, on a partial indemnity scale or substantial indemnity scale, if the client is the party entitled to costs, and
ii. that a client is responsible for paying any costs contribution or award, on a partial indemnity scale or substantial indemnity scale, if the client is the party liable to pay costs.

4. If the client is a plaintiff, a statement that indicates that the client agrees and directs that all funds received as a result of a judgment or settlement of the matter shall be directed to be paid to the solicitor's office to be held in trust by the solicitor subject to the terms of the contingency fee agreement.

Matters not to be included in contingency fee agreements

4. (1) A solicitor shall not include in a contingency fee agreement a provision that,
(a) requires the solicitor's consent before a claim may be abandoned, discontinued or settled at the instructions of the client;
(b) prevents the client from terminating the contingency fee agreement with the solicitor or changing solicitors; or
(c) permits the solicitor to split their fee with any other person, except as provided by the Rules of Professional Conduct.
(2) In this section,

"Rules of Professional Conduct" means the Rules of Professional Conduct of the Law Society of Upper Canada.

Contingency fee excludes costs and disbursements

5. A contingency fee agreement that provides that the fee is determined as a percentage of the amount recovered shall exclude any amount awarded or agreed to that is separately specified as being in respect of costs and disbursements.

Contingency fee not to exceed damages

6. Despite any terms in a contingency fee agreement, a solicitor for a plaintiff shall not recover more in fees under the agreement than the plaintiff recovers as damages or receives by way of settlement.

Settlement or judgment funds to be held in trust

7. A client who is a party to a contingency fee agreement shall direct that funds received as a result of a judgment or settlement of the matter be paid to the solicitor's office to be held in trust by the solicitor subject to the terms of the contingency fee agreement.

Disbursements and taxes

8. If the client is responsible for the payment of disbursements or taxes under a contingency fee agreement, a solicitor who has paid disbursements or taxes during the course of the matter in respect of which services were provided shall be reimbursed for the disbursements or taxes as a first charge on any funds received as a result of a judgment or settlement of the matter.

Assessment of contingency fee agreement

9. For the purposes of clause 28.1 (11) (b) of the Act, the client or the solicitor may apply to the Superior Court of Justice for an assessment of the solicitor's bill rendered in respect of a contingency fee agreement to which subsection 28.1 (6) or (8) of the Act applies within six months after its delivery.

Commencement

10. This Regulation comes into force on the later of the day section 28.1 of the Act is proclaimed in force and the day this Regulation is filed.

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