Contingency Fees in Ontario Personal Injury: What to Know Before You Sign

How Contingency Fee Arrangements Work

Under a contingency fee agreement, your personal injury lawyer receives a percentage of any settlement or court award as their fee — and nothing if your case is unsuccessful. This removes the financial barrier to legal representation for injured Ontarians who cannot afford hourly rates and aligns your lawyer’s financial interest directly with your recovery goal.

Governing Law

Contingency fee agreements in Ontario are governed by section 28 of the Solicitors Act and the Law Society’s Rules of Professional Conduct. Every agreement must be in writing, signed before legal services are provided, and clearly state: the percentage fee; whether it applies to gross or net recovery; how disbursements are treated; HST implications; and what happens if the retainer is terminated before resolution.

Typical Fee Ranges in Ontario

There is no statutory cap on personal injury contingency fees. Rates typically range from 25% to 40% of the net recovery depending on case complexity, litigation risk, and stage of resolution. Clear-liability soft-tissue cases settled early attract lower rates; catastrophic injury cases proceeding to trial warrant higher percentages reflecting years of investment required.

Disbursements: What They Are and Why They Matter

Disbursements are out-of-pocket litigation expenses: expert witness reports, medical record acquisition, court filing fees, process servers, travel, and similar costs. Depending on your agreement, disbursements may be deducted before or after the percentage calculation — a distinction that can meaningfully affect your net recovery. Clarify this point specifically before signing.