Why does the Law Society of Ontario set minimum requirements for our books and records?

In line with anti-competition laws in Singapore, there are presently no guidelines or recommended structure for lawyers’ fees.

Your lawyer may receive a deposit from the client as security for fees to be charged. The money received will be deposited into the law firm's client account. When the lawyer presents an invoice after performing the work, the lawyer may transfer the equivalent to the invoiced amount to the law firm's own bank account provided that the client does not object to the amount billed.

A lawyer may charge interest on his disbursements and Bill of Costs from the end of one month from the date his invoice is dated.

What are 'solicitor and client costs' and 'party and party costs'?

'Solicitor and client costs' refers to the legal costs you are liable to pay to your own lawyer. 'Party and party' costs refers to legal costs that a losing party in a court matter has to pay to the winning party:

If you succeed in your contentious matter, you can expect to recover your 'party and party costs' which will cover part of your 'solicitor and client costs'. If you are unhappy with the legal costs you have to pay the other party's lawyers (in the situation that you have lost your case and have been asked to pay for the other party's costs), you should consult your lawyer as to the taxation procedure of the 'party and party costs’. The 'party and party costs' is in addition to the 'solicitor and client costs' you have to pay your own lawyer.

1. Contact your lawyer
You should first contact your lawyer if you have any grievance concerning your legal fees. Your concerns may be due to a misunderstanding which your lawyer can quickly and easily clarify for you. Sometimes your concerns may be justified and you should still give your lawyer an opportunity to explain.

2. Request an itemized bill
You may also request your lawyer provide you with a detailed bill of costs if you do not already have one. A detailed bill of costs is an itemized bill describing the nature of work done by the lawyer since he began to act for you. The itemized bill should describe items such as time spent on research, drafting correspondence, attending court, attendance with you and other persons including telephone attendance and perusing documents. You may not be aware of all the steps taken by your lawyer on your behalf. One of the purposes of a detailed bill of costs is to tell you exactly what work has been done on your matter.

3. Resolve the dispute by either taxation or mediation.

Taxation is a judicial process to determine the reasonableness of the legal fee. The Legal Profession Act provides for the client and the lawyer to apply to the Court for a formal assessment or 'taxation' of the bill of costs. The client or lawyer must file an application within one year from the delivery of the bill. In a case where you and your lawyer consent to taxation of the bill, the Registrar may proceed to tax the bill notwithstanding that there is no order.

Your lawyer can proceed to tax his own bill of costs if you dispute the quantum of the bill. Your lawyer can only present the bill for taxation one month from the delivery of the bill. Consequently, your lawyer can proceed to sue you on the taxed costs, if you still refuse to pay. After one year from the delivery of the bill, no order shall be made for taxation, except under special circumstances.

Taxation Procedure
There are two types of basis for taxation of legal costs, namely taxation on a standard basis and taxation on an indemnity basis.

'Standard basis' means that the party claiming costs has to show that any particular item was reasonably incurred or reasonable in quantum and therefore allowed. 'Party and party costs' are usually taxed on a standard basis.

'Indemnity basis' means that the party paying costs has to show that any particular item was of an unreasonable amount or unreasonably incurred and therefore disallowed. For contentious matters, 'solicitor and client costs' are usually taxed on an indemnity basis.

In the event that the amount of costs payable under the bill of costs is reduced on taxation, it does not in and of itself suggest professional misconduct.

The Supreme Court of Singapore provides more details on the taxation procedure (link)

The Law Society (LSS) administers a mediation scheme for clients and their lawyers to resolve costs dispute, provided consent from both parties are obtained.  You can access the LSS costs dispute rules guide here.

While overcharging is prohibited under the Conduct Rules, it is not professional misconduct merely because a client disagrees with his lawyer about the amount of fees chargeable. It is also recommended to get the bill of costs taxed by the Court before filing a complaint with LSS against a lawyer for 'overcharging'.

Yes, a legal fee owing is treated as a debt and your lawyer may choose to file a Writ of Summons in court to recover the outstanding amount. There could be additional cost involved once a Writ is filed. To avoid such action, it is important that you and your lawyer should try to settle any dispute on legal fees as early as possible.

Under common law, your lawyer has the right to retain your original document as security, or what is commonly known as a 'lien', if you do not pay his legal fees. Your lawyer must however release the document if suitable arrangements to protect his lien are made in accordance with the Conduct Rules. It is important that you and your lawyer should try to settle any dispute on legal fees as early as possible.