Hiring a lawyer

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The right of a lawyer to practice law is governed in every jurisdiction by statute, court rules, or both. To practice law, applicants must meet specific standards or requirements set out by the law society of the province where the lawyer lives before he or she is allowed to practice law. A lawyer’s right to practice law can be taken away by the law society if the lawyer’s conduct makes him/her unfit to hold a license or exercise the duties and responsibilities of a lawyer.

Hiring a lawyer

Agreements with lawyers fall under two general categories:

1. Contingent fee agreements. The fee paid to the lawyer depends on the amount recovered, either by settlement or judgment.
2. Fixed agreements. The lawyer’s fee is payable whether or not the client receives a settlement. This category includes retaining fee contracts and contracts for a fixed fee.

An agreement to hire a lawyer is similar to a contract with any agent that provides services in any capacity or business. Certain terms are essential in these agreements. There should be, for example, a mutual employment agreement, a clear outline of duties that will be performed, a set period of employment, and a statement of compensation to be paid.

An employment agreement between a lawyer and client generally doesn’t need to be in writing. But because of the complexity of services that will be performed, the difficulty of evaluating the performance, and the desire to avoid client-lawyer disputes over services, making the contract as detailed as possible and putting it in writing is always a good idea.

Lawyer’s liens

Lawyers are entitled to a lien over a client’s file to secure payment of legal fees and disbursements. Liens are divided into two classes: general, possessory or retaining liens; and charging or special liens.

1. A general lien attaches to all documents, securities or moneys and other of the client’s property that comes into the hands of the lawyer in the course of professional employment. Generally, the lawyer doesn’t have to give any notice to make a possessory lien operative.
2. A special or charging lien is one given to a lawyer for services rendered in prosecuting a cause or in procuring a judgment, decree or award for the client. This lien can be enforced by appropriate legal proceedings.

Terminating a lawyer’s services

Whether the client has a good reason or not, he/she has the right to end the relationship with the lawyer, except where the agency of the lawyer is coupled with an interest in the client’s cause of action. A lawyer is entitled to notice of the termination. Although the notice doesn’t need to be formal—it can be any act that shows the intention to sever the relationship—notice in writing (and signed by the client) is preferable. On the other hand, a lawyer can’t end the relationship or abandon a case without reasonable cause. If no cause exists, the lawyer can only terminate the relationship after giving reasonable notice to the client.

The drafted agreement to hire a lawyer

Questions that should be answered and standard statements:

• Date. When does the agreement become effective?
• Purpose. Why is the lawyer is being hired?
• Statement. The lawyer-client relationship is created for purposes stated in agreement.
• Duration. How long will the lawyer be hired for (specified by period of time or extent of services provided)?
• Payment
  • How much will the lawyer get paid?
  • What will the methods and schedules of payment be?
  • Is a retainer required? If so how much and how is it going to be paid?
  • Is there a contingency fee arrangement? Does the lawyer have the right to retain fees from the proceeds of a settlement or judgement?
  • Are there any fixed fees? If so, what are they?
  • Will the lawyer get any compensation if I decide to discontinue services?
  • Liens. Are there any provisions for lien in favour of the lawyer on any recovery made or for a possessory lien on documents to secure payment for general legal work?
  • Costs and expenses for the client. Will the client have to provide any advanced payments to the lawyer?
  • Additional workers. Will the client allow the lawyer to hire a third party—associate or assistant counsel, investigators and/or experts—to help in the case? Who is responsible for these extra costs?
  • Statement. A favourable outcome is not warranted by lawyer.
  • Terminating the contract. What are the rights and obligations of the client if he or she decides to discharge or substitute the lawyer? What are the rights and obligations of the lawyer if he or she decides to withdraw from the case?
  • Statement. The client grants the lawyer the power to execute necessary documents.
  • Additional documents. Do other documents need to be incorporated or referred to in the agreement?
  • Notice. What are the guidelines of giving notice?
  • Jurisdiction. Under which legal jurisdiction is does this agreement fall?
  • Disagreements. How will disputes be addressed?
  • Arbitration. Are there any guidelines for arbitration if there is a dispute?
  • Date of Agreement
  • Signatures