When a client hires a lawyer and that lawyer renders accounts for services rendered, those legal fees are reviewable pursuant to the provisions of the Legal Profession Act, regardless whether it is a criminal defence or civil litigation matter, or a commercial transaction. The LPA provides a mechanism by which either a lawyer or client can apply to have the lawyer’s accounts reviewed, which then results in the Registrar endorsing a Certificate of Fees which is deemed to be enforceable as if it is a judgment of the Supreme Court of British Columbia.
What “fee” is properly subject to review and can be admitted?
Under the LPA, a Registrar must allow fees in the following cases:
(a) those reasonably necessary and proper to conduct the proceeding or business to which they relate;
(b) those authorized by the client or subsequently approved by the client, whether or not the services were reasonably necessary and proper to conduct the proceeding or business to which they relate.
A Registrar retains discretion to permit additional charges that include
(a) those reasonably intended by the lawyer to advance the interests of the client at the time the services were provided;
(b) those requested by the client after being informed by the lawyer that they were unnecessary and not likely to advance the interests of the client.
Often, a lawyer or law firm will initiate a fee review if have unpaid accounts. A client may initiate a fee dispute if they disagrees with charges or disbursements incurred by their lawyer, the size of the bill or believe that they have been overcharged. The lawyer or law firm has the onus to uphold their accounts and if the accounts are reduced by 1/6 then the client will be awarded costs of the review, otherwise the client will need to pay costs and the amount is deducted from the lawyers fee.
Overhead or matters of a purely administrative nature are not properly included as fees. This would include things like allocating a portion of rent or monthly utilities like internet or staff salaries although certain expenses may not be readily apparent whether this is purely administrative in nature or reasonable and necessary.
While there are many considerations to may apply to a fee review, one recently clarified issue is the order of presentation in a fee review. Although a lawyer maintains the onus to uphold their accounts and will usually present first, that is not always the case. The BC Court of Appeal in Iris Legal Law Corporation v. Purcell, 2024 BCCA 90 recently clarified that:
[54] I conclude that there is no mandatory order of proceedings for an LPA review. It is up to the registrar hearing the matter to determine the appropriate procedure to conduct the hearing fairly, effectively and efficiently, having in mind the issues to be resolved on the review.
…
[57] I appreciate that where the only issue is the fairness and reasonableness of a lawyer’s fees, the lawyer will normally proceed first. But I do not consider this presumptive order of proceeding to displace the trial management power that would permit a registrar to call on the clients first when the only issue on review is the client’s assertion—in this case the amendment of the retainer—on which the client has the clear onus of proof.
Our firm assists both law firms and clients on reviews under the Legal Profession Act. If you run a law firm and seek to have independent representation or assistance on how to conduct a fee review, we offer confidential advice to law firms. For clients, we provide initial opinions on the likelihood of reviewing an account and representation and negotiation in fee reviews. Vancouver Legal Fee Dispute Lawyer
