The client retained the solicitors on a contingency fee basis for a catastrophic personal injury action.
The action settled at mediation for $2.5 million in general damages plus costs and disbursements.
The client signed an agreement at mediation authorizing the solicitors to take their maximum contingency fee of $500,000 inclusive of GST.
The client later challenged the fees.
The assessment officer and motions judge both reduced the fees, finding the agreement unfair or unreasonable.
The Court of Appeal allowed the solicitors' appeal, holding that the fee agreement was fully understood by the client, freely entered into, and reasonable given the significant risks assumed by the solicitors and the excellent result achieved.
