Canadian Lawyer

June 2016

The most widely read magazine for Canadian lawyers

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50 J U N E 2 0 1 6 w w w . C A N A D I A N L a w y e r m a g . c o m corporate-commercial, criminal, family, immigration, intel- lectual property, real estate, wills and estates, and labour and employment. Results are again divided by region, with 52 per cent of our 351 respondents reporting an office in Ontario, 48 per cent with an office in Western Canada (British Columbia, Alberta, Saskatchewan, Mani- toba, and the North), and 12 per cent report- ing offices in Quebec or Atlantic Canada. Lawyers from a wide variety of firm sizes took part in the survey, with the bulk, or 57 per cent, in firms of one to four law- yers. A further 25 per cent came from law firms with between five and 25 lawyers, and another 18 per cent from firms with more than 25 lawyers. Fee estimates for individual matters showed a mixed bag of results in this year's survey, with the average cost of most fluc- tuating by less than 10 per cent up or down compared with the 2015 average. However, after a large jump in 2015, the average esti- mated cost of a two-day trial fell by almost 20 per cent, standing at $25,517, down from $31,330 last year. At $56,963, the national average cost of a five-day trial was virtually unchanged over 2015, while the cost of a seven-day trial was down around four per cent at $78,737. Volatility was also evident in the hourly rates reported by our respondents, with lawyers called in the last five years generally charged out at lower rates compared with 2015, while their col- leagues at the senior end of the scale saw significant rises in rates. Nationally, new calls charged an average rate of $211 per hour, down eight per cent from last year's average of $230. Rates for five-year calls were also down, by almost four per cent, at $280 per hour. At the other end of the scale, lawyers called before 1996 charged an average $448 per hour, up 10 per cent over last year. For one rural Ontario lawyer, justifying their hourly rates has become a major barrier to clients, who often "balk when they are initially advised" of it, and struggle to "swallow the fees" when they are ultimately totalled up. "It can be difficult sometimes to make clients understand how much effort is put into the work we do," added the same survey respondent. The perennially small-margin practice areas of real estate and estates law remained the most likely for respondents to cut, according to our 2016 survey, with a number also considering cutting the amount of legal aid work they do. However, for most, the decision is never straightforward: "Legal aid work is not profitable, but we likely won't phase it out as it is part of a lawyer's responsibility," wrote one Alberta practitioner. In Ontario, one mid-size firm has found a compromise solu- tion by taking on legal aid clients, mainly to be handled by more junior lawyers. "It offers invaluable experience and opportunities" for younger associates, writes the respondent, despite costing the firm money on "virtually every legal aid certificate case" it takes because "we provide identical service" to clients whether retained on a normal retainer or through legal aid. Read on to see how your fees match up with the competi- tion, and discover the going rate in your area of practice. "There is a general reluctance among colleagues to admit that what worked in the past no longer works currently and certainly not in the future." Bay Street lawyer What do your clients need? The means to move on. Guaranteed ™ . Baxter Structures customizes personal injury settlements into tax-free annuities that can help your clients be secure for life. Need more information? Contact us at 1 800 387 1686 or baxterstructures.com Kyla A. Baxter, CSSC PRESIDENT, BAXTER STRUCTURES Untitled-1 1 13-09-16 2:53 PM

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