Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m A P R I L 2 0 1 8 21 an associate and five support staff has seen an upward trend in fees, although Gossin perceives hourly rates as something of a yardstick rather than a hard and fast tool. "I've always maintained that the hourly rate is a bit of a fallacy," he says, "because at the end of the day, when you look at the account, the question is really whether or not you're going to get paid for the hours that you have done or whether you have to compromise the account" and change the effective hourly rate. But Gossin senses there is a greater tolerance for higher fees, particularly in wills and estates, where he has noticed an escalation of the "rock-bottom price." He sees clients as being more sophisticated in wills and estate planning and tax mitigation techniques. And there is less resistance for the higher fees. He's also noticing an acceptance and understanding that paralegal work will help keep the overall bill in check. Most of the survey's respondents included wills and estates (61 per cent), real estate (59 per cent), business law (57 per cent) and civil litigation (55 per cent) in their practices. When asked about the top revenue earners, 66 per cent indicated real estate law, 61 per cent said business law and 46 per cent listed civil litigation. The hourly billing rate still reigns and is used by 87 per cent of respondents. Although 71 per cent indicated they charge flat fees, 17 per cent offer blended hourly rates and 33 per cent charge con- tingency fees. Seven per cent offer rising discounts. A majority, 71 per cent, use non- hourly billing or alternative fee arrange- ments primarily to be proactive to remain competitive. For Derek Key of Key Murray Law, with 50 lawyers practising in Prince Edward Island, the hourly rate serves as a base- line — a long-time metric to measure the account. He sees billing as more of an art than a science. "The reality is, as a practice that has a large, rural clientele, the bill that goes out the door accommodates the client's needs and the client's expectation. That may include a combination of hours coupled with being based on success or failure. It may be a fixed-fee arrangement if it's a commoditized type of service," he says, such as amalgamation or incorporation, wills and powers of attorney. And although clients are particularly sensitive to fees, the PEI firm has had annual incremental increases that exceed the rate of inflation. Key says that's accomplished by keep- ing the client's own sensibilities in mind and being creative on how the services are delivered. "You can have the best of technology, you can have great space that doesn't look like it came out of an Ozymandias poem [by Percy Bysshe Shelley in 1818], and if you do that, you can be profitable," he says. "In our jurisdiction, you don't need the Taj Mahal for space. You don't need board- room tables and chairs that look like they came out of the Bank of Canada. Clients aren't looking for that." But there needs to be a balance so the firm remains an attractive place to work and can continue to recruit talent. "Fees or wages or any of those things have never been an issue, either, from our perspective as an employer and nor have they ever been raised as a reason why someone would not come and work with us," he says. Like 76 per cent of the respondents, Toronto's Mills & Mills LLP sets its fees by comparing what other lawyers in the same practice areas charge, while 14 per cent compare their rates to the law society's recommended fee schedule. Managing partner David Mills says the rates have generally increased by a small amount, although some of the more senior lawyers in the firm with eight partners and a total of 34 lawyers don't feel the need 1 to 4 lawyers $293.94 5 to 25 lawyers $296.06 26 to 50 lawyers $358.54 51 to 100 lawyers $309.38 More than 100 lawyers $323.33 Western $313.44 Ontario $327.50 Atlantic/Quebec $237.64 National $303.94 PRACTICE AREA Business Law $307.90 Civil Litigation $305.86 Criminal Law $347.06 Family Law $300.17 Immigration Law $308.33 Intellectual Property Law $409.17 Labour & Employment Law $302.00 Real Estate Law $285.65 Wills & Estates Law $281.10 6 TO 10 YEARS 1 to 4 lawyers $242.48 5 to 25 lawyers $233.20 26 to 50 lawyers $272.79 51 to 100 lawyers $239.47 More than 100 lawyers $269.06 Western $244.87 Ontario $267.74 Atlantic/Quebec $193.20 National $243.12 PRACTICE AREA Business Law $246.53 Civil Litigation $241.35 Criminal Law $259.60 Family Law $239.93 Immigration Law $238.33 Intellectual Property Law $278.64 Labour & Employment Law $232.59 Real Estate Law $239.79 Wills & Estates Law $239.58 2 TO 5 YEARS 1 to 4 lawyers $336.62 5 to 25 lawyers $351.66 26 to 50 lawyers $429.79 51 to 100 lawyers $378.33 More than 100 lawyers $405.94 Western $371.44 Ontario $387.02 Atlantic/Quebec $272.97 National $357.89 PRACTICE AREA Business Law $368.53 Civil Litigation $369.61 Criminal Law $382.38 Family Law $331.17 Immigration Law $347.50 Intellectual Property Law $457.22 Labour & Employment Law $373.41 Real Estate Law $339.47 Wills & Estates Law $334.86 11 TO 20 YEARS HOURLY RATES 1 to 4 lawyers $208.12 5 to 25 lawyers $166.38 26 to 50 lawyers $198.91 51 to 100 lawyers $192.37 More than 100 lawyers $223.89 Western $179.74 Ontario $217.96 Atlantic/Quebec $165.00 National $190.51 PRACTICE AREA Business Law $196.14 Civil Litigation $192.70 Criminal Law $207.33 Family Law $199.52 Immigration Law $201.67 Intellectual Property Law $231.25 Labour & Employment Law $192.27 Real Estate Law $182.70 Wills & Estates Law $180.37 1 YEAR OR LESS (CALL TO THE BAR IN 2017)

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