Harper Grey LLP. v. 0744030 B.C. Ltd.

Harper Grey LLP. v. 0744030 B.C. Ltd.

Although the contingency fee agreement was fair and entered into by a sophisticated client, the fee fixed by that agreement produced an unreasonable result in context: the lawyer provided limited time (16.4 hours), did not communicate the critical settlement-value opinion before the client accepted a settlement, and the result left approximately $30,000–$40,000 on the table; accordingly the registrar reduced the fee to $20,000 (plus disbursements $84.30 and interest and awarded review costs $4,500 to the client).

Citation
2016 BCSC 1034
Parties
Solicitor: Harper Grey LLP; Client: 0744030 B.C. Ltd.; Client: John N. Laxton
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
8 June 2016
Procedural Posture
Fee Review Under the Legal Profession Act / Registrar Review and Reasons for Decision
Outcome
Registrar reduced amount payable under contingency fee agreement and certified fee of $20,000 plus disbursements and interest; awarded review costs to client to be offset against amount owed.
Legal Topics
Contingency Fee, Fee Review, REDMA, Solicitor Client Relationship, Costs and Interest
Source Language
English
Legal Profession Civil Litigation Real Property Contract Contingency Fee Fee Review REDMA Solicitor Client Relationship +1 more

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Parties

Harper Grey LLP

Solicitor

0744030 B.C. Ltd.

Client

John N. Laxton

Client

Procedural Posture

Fee Review Under the Legal Profession Act / Registrar Review and Reasons for Decision

Legal Issues

  1. 1 Whether the contingency fee agreement operates reasonably in context under s.71 LPA
  2. 2 Whether the fee fixed by the agreement should be reduced having regard to s.71(4) factors (skill, result, time spent, amount involved, importance)
  3. 3 Entitlement to disbursements, interest and costs of the review

Ratio Decidendi

Although the contingency fee agreement was fair and entered into by a sophisticated client, the fee fixed by that agreement produced an unreasonable result in context: the lawyer provided limited time (16.4 hours), did not communicate the critical settlement-value opinion before the client accepted a settlement, and the result left approximately $30,000–$40,000 on the table; accordingly the registrar reduced the fee to $20,000 (plus disbursements $84.30 and interest and awarded review costs $4,500 to the client).

Court Disposition

Registrar reduced amount payable under contingency fee agreement and certified fee of $20,000 plus disbursements and interest; awarded review costs to client to be offset against amount owed.

Orders

  • Lawyer entitled to fees in the amount of $20,000 plus applicable taxes
  • Lawyer entitled to disbursements in the amount of $84.30