Contingency caution

Controversy over contingency fees isn’t new. However, a ruling this week in the family law realm has important takeaways. In Jackson v. Stephen Durbin and Associates, Ontario Superior Court Justice Thomas Lofchik ordered a Toronto law firm to refund a $72,000 premium it charged to a family litigant for the favourable result achieved at trial in a custody battle.

Controversy over contingency fees isn’t new.

However, a ruling this week in the family law realm has important takeaways. In Jackson v. Stephen Durbin and Associates, Ontario Superior Court Justice Thomas Lofchik ordered a Toronto law firm to refund a $72,000 premium it charged to a family litigant for the favourable result achieved at trial in a custody battle.

Stephen Durbin — the principal of the firm involved — is considering an appeal because he doesn’t think this particular type of premium charge should be considered a contingency fee.

What I found enticing were Durbin’s arguments in support of allowing contingency fees in family law, particularly when it comes to cases where women are exiting long marriages and have little financial resources to wage legal battle against their former spouses.

“They need a lawyer, but they can’t afford to retain counsel because he’s got all the money,” Durbin says.

It’s a fascinating angle on promoting access to justice.

Here’s the rub, however. The family law bar already knows it is facing a massive access-to-justice issue.

While allowing contingency fees in family law might be a short-term fix, introducing ‘bonus’ payments to lawyers for successful results carries dangerous precedents. Aren’t ethical lawyers always going to do the best they can to represent their clients? Why should such a premium be necessary?

The means to hire a lawyer (financing) — and the ends achieved (a possible bonus) — are two different things. Either way, encouraging contingency fees for family law cases should be approached with caution.

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Relocation disputes surge in family law litigation, says Lerners LLP’s Ryan McNeil

Ont. CA confirms future harm risk not compensable in contaminated medication class action

Law Commission of Ontario announces new board of governors appointments

Ontario Superior Court upholds ‘fair dealing’ in franchise dispute

Ontario Superior Court orders retrial for catastrophic impairment case due to procedural unfairness

LEAF celebrates 39 years fighting gender-based discrimination at annual Evening for Equality gala

Most Read Articles

Ontario Superior Court confirms License Appeal Tribunal cannot award punitive damages

Ontario Court of Appeal denies builder's request for a trial on damages in a real estate dispute

Relocation disputes surge in family law litigation, says Lerners LLP’s Ryan McNeil

Ontario Superior Court grants extension for service of expert reports in medical negligence case