Canadian Lawyer

20 A P R I L 2 0 1 8 w w w . C A N A D I A N L a w y e r m a g . c o m his year's Canadian Lawyer Legal Fees Survey indicates a more hopeful outlook for Canadian law firms as they examine their pricing structures. But the mood remains guarded. None of the respondents expect to cut their fees in 2018. This sets a slightly more positive tone than last year when 0.6 per cent indicated they planned a cut, and it is a healthy change from 2016's three per cent. Not as many expect to increase their fees this year, however, with only 43 per cent indicating an upward trend compared to the 45 per cent last year. "This year was a good year," says Eric Gossin of Toronto's Stancer Gossin Rose LLP. "All of us seem to be achieving a higher hourly rate in terms of what we tell the clients we are charging." Fee adjustments and rates are based on changes in firm costs and/or inflation for 55 per cent of those surveyed. "The downward pressure on fees by not only clients but other lawyers is a problem. I'm not sure how clients are well served by this continual downward pressure. I'm working on improving efficiency and narrowing my practice areas, but not everyone works that way," says one respondent. Another observes that the work itself dictates chang- es in fees: "Prices need to go up because of complexity and demand for perfection." Complexity factored into rate increases for 39 per cent of respondents, while 58 per cent cited inflation and higher overhead as the main factor for fee increases for 57 per cent of the responses. Half of those increas- ing their fees indicated they would go up by five per cent or less, while 37 per cent suggested fees could increase by six to 10 per cent. The Canadian Lawyer 2018 Legal Fees Survey examines the going rate for 54 matters in 10 practice areas: civil litigation, business, criminal, family, immigration, intellectual property, real estate, wills and estates, personal injury and labour and employment. Five hundred and eight peo- ple participated in the survey, which was conducted from Dec. 29 to Jan. 25. Half of the respondents operate in Ontario (24 per cent of the total listed Toronto as their base), 16 per cent in both Alberta and British Columbia, three per cent in Manitoba, seven per cent in the Atlantic provinces, five per cent in Quebec and four per cent in Saskatchewan. Nearly half (49 per cent) were in firms with one to four lawyers, 29 per cent had five to 25 lawyers, nine per cent had 26 to 50 lawyers, five per cent had 51 to 100 lawyers and eight per cent worked in firms with more than 100 lawyers. At his general practice firm, Gossin says, rates are usually set at the beginning of the fiscal year with the firm's financial statement, when profit goals are established and reasonable expectations on billing and collecting are examined. Generally, the firm with three partners, L AW O F F I C E M A N A G E M E N T JEANNIE PHAN The right price Canadian Lawyer's 2018 Legal Fees Survey shows some bright spots for law firms despite a highly competitive market T By Marg. Bruineman

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