Canadian Lawyer

July 2008

The most widely read magazine for Canadian lawyers

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Regionally, Ontario lawyers accounted for 70 per cent of re- sponses, British Columbia had 19 per cent, and Alberta made up almost 11 per cent. While we had responses from across Canada, there wasn't enough meaningful data to do regional breakout charts for other areas. In practice areas where there was no response, those too have been excised from the regional breakouts. In addition to asking about fees charged in various legal mat- ters, we asked respondents to comment on areas of law that are no longer profitable and being phased out. It goes without say- ing that estate work, like preparing a simple will (for a national average of $340) or power of attorney (average $110) acts as a loss leader for small firms. They don't make a firm money but they create client contact and get them in the door for other legal services. In the past, these additional services could have been real es- tate, but many respondents to this year's survey say they are phasing out residential real estate work. "It is hard to raise legal fees for real estate when we are constantly acting as collectors for third parties who charge high fees, lenders, software pro- viders, government registrations and search costs, taxes, title insurance," says one Ontario lawyer. "These fees have increased exponentially but the lawyer's fee doesn't keep up." Another says: "In real estate, we are constantly asked for quotes and the realtors pressure us down, which is annoying. I turn away peo- ple if they do not want to pay the set fee." No doubt real estate fees are a bone of contention among our respondents, as close to one-third indicated that they do work in this area. Legal aid is another area that can't get any love from law- yers. Sure, it's never been glamorous, high-paying work, but many lawyers are operating at a loss by taking on legal aid cases — and they can no longer afford to. "The legal aid rate is abominably low," says one small-firm lawyer. "I was billed out as an articling student five years ago at a higher rate than legal aid pays me now. It is disheartening, drives lawyers away from important public-interest work, and leaves clients with less prepared, less qualified lawyers. It's a scandal that it is al- lowed to continue." Another notes: "Family law is very difficult — huge retainers are required to remain profitable as they are extremely labour- intensive files, and very few people could ever afford to main- tain their minimum retainer. Legal aid rates and maximum hours are laughable considering the amount of wasted time spent in court." The overarching theme of this year's responses is that times are tough for the small-firm lawyer. In fact, our chart of hourly fees charged has remained virtually unchanged when com- pared to results from several years ago. "Fees have not kept pace with increasing costs," says one respondent. "My mechanic charges $95 an hour. Relative to what I charge, that is far higher than it was 20 years ago." NATIONAL FEE RANGES SAMPLE SIZE 314 CIVIL LITIGATION Civil action, up to trial (two days) Civil action, appeal only CORPORATE CRIMINAL FAMILY Secured financing agreement Simple, small business incorporation Simple prospectus Summary criminal offence (one-day trial) Bail hearing Criminal offence (one-day trial) Uncontested divorce Contested divorce Separation agreement IMMIGRATION Child custody and support agreement Work permit Spousal sponsorship Skilled-worker application INTELLECTUAL PROPERTY Simple patent application Simple trademark registration Patent audit REAL ESTATE Residential real estate purchase WILLS AND ESTATES Residential real estate sale and purchase Commercial property purchase Commercial lease agreement Simple will Complex will Power of attorney Probate MIN $15,040 12,710 2,260 960 3,540 2,150 840 2,960 1,450 10,040 2,960 3,280 1,510 2,200 3,180 7,710 1,720 1,300 780 1,680 2,610 3,510 340 790 110 1,650 MAX $46,480 52,880 6,760 2,190 44,880 6,290 2,100 6,930 2,860 59,060 10,010 17,420 4,310 6,380 8,200 21,800 2,980 6,000 1,630 2,670 8,960 11,590 620 7,110 310 17,010 AVG $25,220 22,750 2,440 1,310 6,810 3,190 1,250 3,960 1,620 15,050 4,820 6,660 2,520 3,110 4,630 12,880 1,560 3,000 980 1,780 3,120 3,750 440 3,240 140 2,530 www. C ANADIAN Law ye rmag.com JULY 2008 39

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