How long does a Client have to Dispute a Lawyer’s Fees/Bill under the Solicitors Act?

If you believe that you have been overcharged for legal fees by a lawyer or that the legal fees charged by your lawyer are unreasonable, you may have the ability to dispute the lawyer’s fees under the Solicitors Act in Ontario and have the lawyers fees reviewed in a process commonly known as an “assessment”. The Solicitors Act provides a process for clients (and sometimes a third party) to seek review (i.e. assessment) of a lawyer’s fees and bills by an Assessment Officer, even if the legal fees are paid. If successful, the client may get some of the legal fees paid to the lawyer refunded. 

What are the timelines to ask for an Assessment of a Lawyer’s Fees under the Solicitors Act in Ontario? 

The Solicitors Act contains strict time periods for when a client must requisition for assessment to dispute a lawyer’s fees. Under section 3 (b) of the Solicitors Act in Ontario, a client has 1 month from the date of delivery of the lawyer’s bill to ask for an  assessment of the lawyer’s fees under the Solicitor’s Act in Ontario.  

Case law has established that the clock starts ticking for the purpose of section 3 of the Solicitors Act on the date that the final bill is delivered. In other words,  all of the lawyer’s bills that are rendered in connection with the same matter prior to the final bill are generally considered interim bills. As long  as the Order for Assessment is obtained within one month from the date of that the lawyer’s final account is delivered, the Client should be able to proceed with the assessment of their lawyer’s bills (including all prior bills) under section 3(b) of the Solicitor’s Act. 

Determining if a bill is final or interim is a question of fact.  Differentiating between a final bill and an interim one hinges upon factual considerations. A key precedent in this realm is the Ontario Court of Appeal decision in Shapiro, Cohen, Andrews Finlayson v. Enterprise Rent-a-car Co., which elucidated that interim accounts are not tantamount to final ones. Labrosse J.A. conducted a comprehensive evaluation of pertinent case law concerning the conclusiveness of lawyers bills yielding the following principles:

• It is a question of fact as to whether prior accounts are, in the circumstances, to be treated as final for the purposes of the limitation period for seeking assessment; 

• A solicitor has no right to render a final bill until the transaction is completed;  

• Accounts will not be final when they are rendered in connection with what is essentially one matter and one dispute; 

• When solicitors perform services for a client in relation to the same matter over a long period of time, all of the bills must be considered as interim for the purpose of taxation,

• The fact that the client paid a bill and did not complain does not convert interim bills into final bills. 

Can I still Dispute my lawyer’s legal fees and have an Assessment Officer review  my Lawyer’s bill if I missed the one month deadline?  

In all likelihood, you still have recourse, albeit through a more complex process. The streamlined procedure established in section 3(b) of the Solicitors Act for obtaining an Order for Assessment via requisition is not available for lawyer’s bills that was delivered over a month ago. An Assessment Officer lacks jurisdiction to review the lawyer’s fees and initiate requisition for assessment in such instances. Often, the lawyer may not oppose the assessment, allowing the motion to proceed either with consent or without opposition.

When a motion is filed concerning paid accounts, the client will need to demonstrate “special circumstances.” The precise definition of “special circumstances” in the context of requesting an assessment of a lawyer’s bill is not exhaustive. The Court of Appeal in the Enterprise case described this test as follows: “The meaning of the phrase has been interpreted to include any circumstances of an exceptional nature affecting the matter of costs or the liability of a solicitor’s client which a judge, in the exercise of judicial discretion in each particular case, may consider to justify a taxation.” Factors to consider include the reason for the delay, duration of the delay, timing of the motion, reasonableness of the fees, magnitude of the accounts, and evidence of dissatisfaction.

For unpaid accounts, the client’s burden to initiate an assessment of the Lawyer’s bills is less stringent than demonstrating “special circumstances.” A gap exists in the legislation pertaining to unpaid accounts. The Court has drawn upon its inherent jurisdiction to order assessments, and the criteria are less stringent than establishing “special circumstances.” Minimal evidence is required for the Court to exercise its jurisdiction in this context.

It is always best to seek legal advice from a  lawyer well versed in Assessments under the Solicitors Act to ensure that you can dispute your lawyer’s fees and have the lawyer’s fees and  bills reviewed by an Assessment Officer under the Solicitors Act.