What percentage does Porcelli D’Angela LLP charge for its contingency fee? How is it calculated?
In Ontario, when a personal injury action is handled on a contingency fee basis, the calculation of fees and disbursements follows specific guidelines:
Contingency Fee Agreement (CFA): The lawyer and client agree that the lawyer’s fee will be a percentage of the amount recovered from the settlement or award. This percentage is specified in the CFA. At Porcelli D’Angela, we charge a fee of 30% plus HST plus out of pocket expenses called disbursements.
Calculation of Fees: The legal fee is calculated as a percentage of the total settlement amount, minus any disbursements. For example, if the settlement is $100,000 and the disbursements are $10,000, the fee is calculated on $90,000. If the agreed percentage is 30%, the fee would be $27,000.
Disbursements: These are out-of-pocket expenses incurred by the law firm on behalf of the client, such as court filing fees, medical reports, and expert witness fees. These costs are typically deducted from the settlement amount before calculating the lawyer’s fee.
HST: Harmonized Sales Tax (HST) is applied to the lawyer’s fee. Continuing with the previous example, if the fee is $27,000, HST at 13% would be $3,510, making the total fee $30,510.
Client Disclosure and Transparency: Lawyers are required to provide clients with a guide on contingency fees and disclose their maximum contingency fee percentage. They must also use a standard form CFA and disclose certain information when billing the contingency fee.
Here’s a simplified example of how our fee is calculated:
Settlement Amount: $100,000
Disbursements: $10,000
Net Amount for Fee Calculation: $90,000
Contingency Fee (30%): $27,000
HST (13%): $3,510
Total Fee: $30,510
Client Receives: $100,000 - $10,000 - $30,510 = $59,490
This structure ensures that clients only pay legal fees if they win or settle their case, making legal services more accessible.
When you choose Porcelli D’Angela LLP, you are choosing unparalleled expertise, dedication, and personalized service. What stands out is our years of experience which has established a proven track record of success, a deep understanding of the legal landscape, and a commitment to client satisfaction. With our team of skilled legal professionals who specialize in personal injury law, Porcelli D’Angela LLP offers clients a wealth of knowledge, strategic thinking, and a relentless pursuit of justice, ensuing their legal matters are handled with the highest level of professionalism.
Call us at 647-490-944 for a free, no hassle consultation. At Porcelli D’Angela LLP, you do not pay unless you recover money.
Disclaimer: The explanations and information provided here are for general informational purposes only and are not intended to be legal advice. Always consult with a qualified lawyer or legal professional for advice specific to your situation.