Vismay Merja

A law firm sought assessment of its legal fees under a contingency fee retainer agreement with former clients.

The clients terminated the retainer and retained new counsel.

The law firm claimed fees totaling approximately $158,920.38 based on hourly rates, arguing the retainer agreement provided for such compensation upon termination.

The court conducted a quantum meruit analysis and found the accounts unreasonable due to vague time entries, disputed meetings that did not occur, apparent double billing, and work that did not demonstrate value to the clients.

The court reduced the fees substantially, assessing Mr. Hopkins' account at $57,424.82 (including HST) and Mrs. Hopkins' account at $27,687.35 (including HST).

This costs endorsement addresses the appropriate quantum of costs following a motor vehicle accident trial in which the plaintiff was awarded damages by the jury, but the award was reduced to zero by operation of the Insurance Act.

The defendant sought $269,264.87 in costs, later reducing the request to $230,000.

The plaintiff argued for a much lower award, citing financial hardship and litigation conduct.

The court fixed costs at $185,000, finding the defendant entitled to costs but reducing the amount for duplication, lack of particulars, and proportionality.

The appellant law firm, UL Lawyers Professional Corporation, appealed a Superior Court decision denying their request for a solicitor's lien against settlement proceeds.

The firm had represented the respondent client in motor vehicle litigation before being discharged.

The application judge found two of the three criteria for a charging order met but concluded there was no evidence the client would not pay.

The Court of Appeal found that the application judge erred in relying on an ambiguous undertaking and that a subsequent $5,000,000 lawsuit filed by the client against the firm provided sufficient "some evidence" that the client would not pay.

The appeal was allowed, and the firm was granted a solicitor's lien for $73,195.75 plus costs.