Contingency Fee Reforms Take Effect

  • July 01, 2021

On July 1, 2021, reforms to continency fees came into effect through the following:

  • Solicitors Act – amendments including the repeal of s. 28.1(8), which prohibited the inclusion of costs in the amount on which a contingency fee calculation is based.
  • O. Reg. 563/20: Contingency Fee Agreements – a new regulation requiring the use of a new standard form Contingency Fee Agreement (CFA), incorporated by reference.
  • Rules of Professional Conduct – amendments pertaining to required disclosures, information and reporting relating to CFA’s.

The OBA has been strong advocate in earlier submissions for ensuring lawyers have reasonable and predictable compensation for their services in line with litigation risks and that reforms to contingency fees regime avoid a one-size-fits-all approach that triggers inadvertent consequences.

The OBA is working with government and the Law Society to make sure that there isn’t unnecessary red tape for firms resulting from the potential application of the new requirements to inappropriate situations.