Law Times

Law Times • November 29, 2010 FOCUS Legal fees under scrutiny Report finds Ontarians are shunning lawyers due to cost BY DARYL-LYNN CARLSON For Law Times L aw firms may soon find themselves reconsider- ing their fee structures following a study by the Law Society of Upper Canada that indicates the majority of people in Ontario who earn a salary of $75,000 or less can't afford to retain a lawyer for a civil law matter. The report from the On- tario Civil Legal Needs Project, released last May, also indicates that people have many miscon- ceptions about lawyers and try to avoid having to hire one at all costs. "For the hundreds of thou- sands of Ontarians who need help with a civil legal issue, the system is poorly understood or perceived to be inaccessible by many," says the report's execu- tive summary. "Legal service providers, le- gal associations, social agencies, government, and members of the justice system will all find in this report a thorough ex- amination of the kinds of legal needs that arise among low- and middle-income Ontarians, how they try to resolve those needs, and where resources could be better utilized." According to the report, one in three low- and middle- income Ontarians have had a non-criminal legal problem or issue in the past three years and one in 10 has had multiple le- gal problems. "Overall, almost four in 10 people who had ex- perienced a legal problem and sought assistance in the last three years reported that they were still working to resolve their most important prob- lem," the report points out. Marion Boyd, a bencher with the LSUC and a former attorney general who sat on the steering committee that oversaw the report, says she was surprised at many of the findings. "What was surpris- ing was the broad availability of the Internet and 85 per cent of people who responded ex- pressed a willingness to use the Internet to get more informa- tion about the legal system to get information about their le- gal problem," she says. "They recognize they need legal assistance but want to do a lot of the work themselves because they basically believe that it was far too expensive to hire a lawyer." However, the study found that a significant number of people who ended up seeing a lawyer resolved their civil mat- ter for under $1,000, Boyd notes. "That was a bit surpris- ing, although the matters they were dealing with would not have been high-cost matters and certainly didn't include family law." For many Ontarians, retain- ing a lawyer to represent them in a custody battle or any other Common reasons for not retaining a lawyer The following were the top responses by people surveyed about why they didn't retain a lawyer when they incurred a legal problem: 'One of the more disappointing findings was the lack of knowl- edge about paralegals, what they do, and how they can help,' says Marion Boyd. family law matter is perceived as being highly expensive and out of reach for most people earning less than the income level the survey focused on. "One of the more disap- pointing findings was the lack of knowledge about paralegals, what they do, and how they can help," says Boyd. "Family law matters remain a real issue be- cause of the cost for a lot of peo- ple who were surveyed. We have to see what we can do to make sure legal services are more acces- sible to everyone who needs it." The study also found that of the people in the survey group, those earning less than $20,000 were most likely to re- port having legal problems in certain areas, particularly relat- ed to family law. When asked what kind of legal problems they may have in the future, low-income earners responded that they foresaw issues with family relationships, possibly dealing with a relative's will, or real estate. As a result of the study, the LSUC will introduce reforms and recommendations to make legal services more accessible for lower-income residents. As well, it's conducting a second- ary study to determine how many lawyers and paralegals there are projected to be in On- tario once those from the baby boom demographic retire. "Many practitioners are retirement, and approaching there aren't enough new law- yers getting into the practice," Boyd says. As well, in some of the more remote regions of the province, there could be a lack of special- ist lawyers once those currently practising retire. "We want to get a better picture of where the gaps are in the profession so we know the availability of legal professionals," Boyd says of the second survey, which is meant to complement the study on lawyer affordability. The second study is sched- uled to be released next March. Jacqueline King, a partner in the civil litigation depart- For over 70 years Thomson, Rogers has built a strong, trusting, and collegial relationship with hundreds of lawyers across the province. As a law firm specializing in civil litigation, we have a record of accomplishment second to none. With a group of 30 litigators and a support staff of over 100 people, we have the resources to achieve the best possible result for your client. Moreover, we are exceptionally fair when it comes to referral fees. We welcome the chance to speak or meet with you about any potential referral. We look forward to creating a solid relationship with you that will benefit the clients we serve. THOMSON, ROGERS Barristers and Solicitors 416-868-3100 Toll free 1-888-223-0448 www.thomsonrogers.com YOUR ADVANTAGE, in and out of the courtroom • Cost too much/couldn't afford a lawyer ...................................................................................42% • Didn't believe that I would qualify for legal aid or free assistance ...................................8% • Not important enough .....................................................................................................................6% • It would take too much time ..........................................................................................................5% • Didn't know what to do ....................................................................................................................5% • Thought nothing could be done...................................................................................................4% • Didn't know where to get legal assistance ................................................................................4% • Issue resolved itself ............................................................................................................................3% • Too stressful ..........................................................................................................................................2% • No lawyer available nearby practising in the area I required help with .........................2% • Further retribution/threatening remarks ...................................................................................2% • Other .....................................................................................................................................................10% • Don't know/not applicable .............................................................................................................6% Source: Report of the Ontario Civil Legal Needs Project ment at Shibley Righton LLP in Toronto, agrees that lawyers are perceived to be too expen- sive and that many Ontario residents can't afford to hire one to challenge a basic procedure such as an eviction. "As lawyers, we can't even af- ford each other," she says, not- ing that depending on the mat- ter at hand, it's common for an individual to run up $40,000 in legal costs for a civil matter. "I can say that I don't know any- one who can afford that much for a legal bill." King notes she's not sur- prised by the LSUC findings and says more firms should look at providing clients with lower fees or, alternatively, a fixed rate if they'll bring repeat business. "We do have to make legal services more affordable for the average person," she says. "Legal fees are something that almost everyone has to pay for once or twice, and people just can't afford it at the high rates that lawyers charge." LT PAGE 9 Trust [ Aleks Mladenovic | Every time you refer a client to our firm, you're putting your reputation on the line. It's all about trust well placed. Richard Halpern | Sloan Mandel Untitled-1 1www.lawtimesnews.com 5/19/09 11:47:00 AM

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