In Ontario, access to justice is an important issue that the Law Society of Ontario (LSO) and the Ontario Lawyers Association (OTLA) take very seriously. To ensure access to justice for all, the LSO allows lawyers in this province to handle risky cases without being paid from the outset. These rules are commonly referred to as „emergency fees,“ „no profit without charge“ or „speculative fees.“ You`re a kind of guard between a lawyer and a client. Historically, contingency taxes have been banned in Canada, Scotland, England and Wales because of a legal concept known as „champerty and maintenance.“ The courts did not want „foreigners“ to a litigation financing of trial costs as an investment for future rewards. In the state of New South Wales, Australian contingency fees are still prohibited. A contingency tax is a tax that is only levied if the lawyer wins the case. In other words, legal fees are subordinated or depend on the lawyer`s compensation for the client. When the case is won, the lawyer usually collects a percentage of the client`s distinction as payment. If the lawyer does not succeed, the client generally does not have to pay a fee. If passed, Bill 103 would require that „unforeseen costs be limited to 15%,“ said Mike Colle, MPP for Eglinton-Lawrence. The Insurance Brokers Association of Ontario (IBAO) has previously voted in favour of a 25% cap.  Https://lso.ca/paralegals/practice-supports-and-resources/topics/managing-money/fees-and-disbursements/contingency-fees In these situations, lawyers may agree with a potential client that no money will be paid in advance, and the lawyer will work on their case until a solution is found or a judgment is rendered. Once the matter is settled, the lawyer will take a percentage of the agreed transaction.
Percentages may vary depending on the risk of a case – but in general, the Law Society prohibits a lawyer from recovering more damages than a client receives. (O. Reg. 195/04, Section 7). Therefore, the highest that a lawyer can collect under a contingency tax is 50% of the damage recovered. Complex injury actions are costly to follow. Unforeseen events can operate without cost restrictions; Encourage lawyers to ensure the maximum compensation for their clients; and allow the client to finance his recovery without the financial burden of simultaneously financing a lawsuit. Will Davidson LLP`s Team of Oakville personal injury lawyers offers arrangements contingency fee arrangements for complex cases and believes the system provides improved access to justice for Ontario`s most vulnerable injury victims.