LEGAL COSTS - a sensitive topic for lawyers?

This is not an apology for lawyers' fees. Just a simple explanation of some facts. Overcharging is a mortal sin for lawyers. Law Societies take a very grim view of this practice and a lawyer found guilty of this practice may lose his / her right to practice.

This section of Law Pages is in three sections because we will deal three distinct areas of legal fees.

Fees you pay to your lawyer - some basics

These costs are based on an agreement you have with your lawyer. Some lawyers charge fees in excess of $300.00 / hour, but if you have agreed to it, then you cannot do much about it.

Many lawyers base their fees on 'the Supreme Court Scale'. This Scale is a list of fees which judges of the Supreme Court approve. The list contains costs for almost every conceivable piece of work a lawyer will do. Lawyers take this scale as a guide and then add a further percentage.

It is our opinion the Supreme Court Scale is inappropriate for many legal matters, because the Scale is not based on the true cost of providing services by a particular lawyer or even a majority of lawyers. Lawyers use the Supreme Court Scale as a benchmark.

You should remember that certain types of work may only be charged in a particular way. For example, Family Law work and an Application for Probate have particular rules.

Although it is not a public fact, for most lawyers the cost of providing a service is more than 60-70 cents in every dollar of fees earned. In other words to earn a taxable income of $50,000, the lawyer must bill $600-700.00 for each working day of a year.

The next section suggests some questions about costs you should ask the lawyer you wish to engage.