A reminder to the profession that significant changes to Ontario’s contingency fee regime take effect tomorrow, July 1, 2021.
Key reforms include:
- the required use of a new plain-language standard form Contingency Fee Agreement
- disclosure of the maximum contingency fee percentage charged
- extension of the provisions on contingency fee agreements in the Solicitors Act and O. Reg. 563/20 to paralegals
- a consumer guide, Contingency Fees: What you need to know which must be provided to potential clients before they enter into a contingency fee agreement
You’ll find the requirements for contingency fee arrangements entered on or after July 1, 2021 in the following legislative and regulatory authorities:
- sections 15 to 32.1 of the Solicitor’s Act, R.S.O. 1990, c. S.15
- a new contingency fee agreements regulation, O. Reg. 563/20
- sections 3.6 and 4.2 of the Rules of Professional Conduct
- rules 5.01 and 8.01 of the Paralegal Rules of Conduct and Guideline 13 of the Paralegal Professional Conduct Guidelines
For further information and tips on implementing the new requirements, see Frequently Asked Questions about Contingency Fees (Law Society of Ontario) and 10 Tips to Adapt to the New Contingency Fee Regime (LawPro).
And for background information on the changes and links to the relevant Convocation reports, see the Law Society’s webpage on Contingency Law Reforms.