Understanding Contingency Fees in Ontario
Only Pay if You Win — Here’s What You Need to Know
Contingency fees let you hire a legal professional without paying upfront. Instead, they’re paid a percentage of the money you receive if your case is successful. This guide explains how it works, what’s covered, and what to expect before signing a contingency fee agreement.
What is a Contingency Fee?
A contingency fee means you only pay legal fees if you win or settle your case. Your paralegal takes a percentage of your awarded amount. If you don’t win, you don’t pay legal fees — though other expenses like disbursements may still apply.
Where Can Paralegals Offer Contingency Fees?
In Ontario, paralegals can use contingency fee agreements in Small Claims Court or in administrative tribunals such as the WSIB. They are not permitted for criminal or family law matters.
How Are Contingency Fees Calculated?
Your paralegal will set a percentage based on how complex and risky your case is. Simpler cases that are likely to settle early may come with a lower rate. The percentage is always applied to your final settlement or award and must be fair and reasonable.
Types of Contingency Fee Structures.
There are different ways these agreements can be set up. Some use a fixed percentage throughout. Others are staged, with a lower fee if the case settles early and a higher one if it goes to a hearing. Some are partial, where you pay reduced fees upfront plus a contingency percentage if you win.
What Happens If You Win?
If your case is successful, the funds are typically paid to your paralegal, who will deduct the agreed legal fees, disbursements, and taxes. You’ll receive the remaining amount along with a breakdown of all deductions in a final account statement.
Download the Law Society of Ontario’s Official Guide to Contingency Fees.
Gain a clear understanding of how contingency fee agreements work in Ontario. Click below to access the free guide provided by the Law Society of Ontario. A copy of this guide is also included in your retainer package when you become a client.
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