Law Times

Law Times • December 5, 2011 NEWS LSUC fee hike minimal, bencher says Lawyers to pay $41 more in 2012 to cover increased costs BY KENDYL SEBESTA Law Times per Canada represents the cost of an occasional latte, lawyers say they'll be watching out for the impacts of the latest increase. "Th e law society has an im- W portant role, and we are sup- portive of their goals to serve in the public interest," says Ontario Bar Association president Paul Sweeny. "But with that said, there has to be a balance between the public interest and access to justice . . . a balance between the law society's obligation and the impact on lawyers. It's some- thing that we are going to con- tinue to look into." But another lawyer says the fee hike, aimed at helping fund $4.4 million in salary and ben- efi t increases and more than a dozen new hires next year, is "ridiculous." "I can't imagine anyone who would be OK with the increase," says a Kitchener, Ont., sole prac- titioner who spoke on condition of anonymity. "But it's like get- ting old. You don't like it but you have to put up with it." Th e comments come after Convocation approved the pro- posed budget for 2012 on Nov. hile a bencher says a $41 fee hike by the Law Society of Up- 24. Th e law society says the fee hike is to cover areas such as in- creases in professional regulation costs, information system chang- es, salary hikes, and funding to law organizations, including the Law Commission of Ontario. Th e new budget means law- yers will pay 2.3 per cent more than they did this year in annual fees. As a result, they'll climb to $1,826 next year from $1,785 currently, a fi gure the Kitchener lawyer says can add up over time. "Between insurance and oth- er fees, we spend almost $6,000 every year with the law society. Th ey've become a necessary evil. Th ey have to be there to regu- late, but the system really is op- pressive." But at least one law society bencher said the fee increase will have little impact on lawyers' pock- etbooks next year. "LawPRO get- ting into 2012 remains stagnant at $3,350," Bencher Alan Silverstein said at Convocation. "So the cost of practising law per practitioner in 2012 will be $41 a year more than it was last year in 2011." According to Silverstein, "that's the cost of one latte over three weeks. So as a sole practi- tioner who pays this out of his own pocket, I can tell you this amount is certainly something that I think the profession can handle. . . ." The fee increase is manageable, says Alan Silverstein. Factors aff ecting lawyer and paralegal fees include the in- creasing costs of professional regulation largely due to a rise in the number of complaints and discipline hearings. Th e Kitchener lawyer, how- ever, has other concerns about the law society's burdens. "Most of us also spend a signifi cant amount each year on profes- sional development courses that, 10 years ago, you could go to the library and learn for free," he said. "But now, you are required by the law society to take a cer- tain number of courses, which at between $300 and $700 is quite a whack of money. So we end up giving them all our money and getting little in return. I mean, some of the courses have noth- ing to do with our practices, like how animal bylaws apply to sole practitioners and so on. It be- comes a waste." Overall, the fee increases, as well as a rise in the number of practitioners, will increase to- tal fee revenues by $2.6 million from lawyers next year. Other signifi cant sources of revenue include professional de- velopment and competence at about $15 million. Th e 2012 budget shows the law society's greatest expenses from the general fund are for professional regulation at more than $25 million and profes- sional development and com- petence at roughly $21 million. Expenses for administration account for more than $19 million, a number that's up by $1 million over 2011. Despite the increases, the law society says it has taken several actions to keep lawyer and para- legal fees relatively low. "Alloca- tion of $2.75 million from the accumulated surplus has been al- located to mitigate fee increases for lawyers," the 2012 budget noted. Bencher Carol Hartman added that surpluses from other areas of the 2011 bud- get would also help to mitigate fees. "When looking to the compensation fund surplus, I am happy to highlight for you that we are saving, per lawyer, an increase of fees of $76, so it is a signifi cant savings," she told Convocation. 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