When it comes to legal services, understanding how lawyers determine their fees can help shape your strategy, right down to whether or not you even pursue your claim (or stake out a defence). Clients often wonder why legal costs can vary significantly. Let’s explore the factors that influence lawyer pricing and how Access Law has set its hourly rate.

1. Geographic Location

Legal fees can vary based on where the lawyer practices. The costs for the lawyer to do business and the spending power of the client both come together for unique market dynamics. Although the professional services offered by lawyers do not have the same “touch” as massage therapists, barbers, chiropractors, and aestheticians, the need for the lawyer to be licensed within the jurisdiction makes it difficult to hire a lawyer outside of the province. Add to this the court locations spread throughout Alberta, and it often makes sense to hire local.

2. Overhead and Administrative Costs

Law firms incur overhead expenses, including office space, staff salaries, technology, and research tools. These costs factor into the overall fee structure. Access Law is part of a new generation of streamlined, efficient firms that focus on the work, not the image.

3. Professional Regulation

Lawyers like law so much, they create laws for themselves! A lawyer, as opposed to a consultant or paralegal, is a regulated professional. Guidelines for fees are mandated by the Law Society of Alberta in its Code of Conduct (you’ll find that under Chapter 4, if you are so inclined to read more). In addition, lawyers are Officers of the Court (remember geography above? Lawyers have a right to appear in courts, whereas non-lawyers can usually only represent themselves). And so, the Alberta Rules of Court also has something to say about lawyer fees!

In addition to the guidelines imposed, the profession also creates a large expense, as it costs over $5,000 a year for licensing and professional insurance.

4. Experience and Expertise

Lawyers with more experience and specialized knowledge tend to charge higher fees. A seasoned expert who has handled complex cases or specializes in a niche area may command a premium.

Access Law’s focus is on broad accessibility, rather than in-depth specialization. Consider it like a family doctor – you come in, you get assessed, and many times, Access Law can solve your legal problem in-house. If not, you receive (a) a candid assessment of your case, (b) the first, straightforward steps completed at a lower rate, and (c) a referral based on a lawyer’s assessment of the legal issues raised and the sort of expertise required. In either case, you are in good hands.

5. Fee Structure

Different legal services have varying price structures. For instance:

Consultations: Initial consultations may be free or offered at a reduced rate. Sometimes, it is all that a client needs for assessing their dispute and deciding on the next step. For example, Calgary Legal Guidance, Calgary’s premier legal advice clinic for economically disadvantaged Calgarians, has traditionally offered “Summary Advice” with volunteer lawyers, geared toward providing the disadvantaged with a roadmap. Sometimes this is all a client can obtain.

Flat Fees: Some legal matters, such as drafting a will or handling a real estate transaction, are often billed at a flat fee. Clients know upfront what they’ll pay for these specific services.

Contingency Fees: In personal injury or certain civil cases, lawyers may work on a contingency basis. They receive a percentage of the settlement or judgment if the case is successful.

Hourly Billing: Most lawyers charge by the hour. The hourly rate reflects the lawyer’s time spent working on your case. In this way, a lawyer is ensured payment even if the complexities of the case escalate costs. Unfortunately, this makes the cost unpredictable for the client.

Setting the hourly rate is also an unpredictable process. Some firms (mostly larger, mega-firms) have begun pricing by studying supply, demand, and the market. But most lawyers will increase their rate if they find they are at capacity. Unfortunately, there is a high demand for lawyers, driving up rates with no limit.

Benchmarking

Many people consider lawyers among the highest paid professionals. Without a benchmark, though, why stop increasing your rate, if someone is willing pay?

At Access Law, I have benchmarked my hourly rate by looking beyond the legal profession, to other professional services. The Psychologists’ Association of Alberta, regulating the psychologists that help guide and support many Calgarians through their roughest problems, sets a fee of $220 per hour, increasing to $330 if the work involves forensics. Lawyers, too, help Calgarians through some of their roughest problems and darkest days. As such, I have set my hourly rate to $275 (June 2024), falling between the two rates recommended by the Psychologists’ Association.

It is possible to charge more, but benchmarking offers a reasonable and justifiable restraint. As a 6^th Year Call (as of 2024) lawyer practising in litigation, I believe that $275 is one of the best rates you will find. Which makes legal services, and therefore legal rights, more accessible.

Conclusion

Access Law strives to provide quality legal services at a reasonable cost. By setting its hourly rate at $275, Access Law ensures accessibility while maintaining the high standards required of a regulated professional. Whether you need legal advice, representation, or assistance, Access Law is committed to serving its clients effectively.

At Access Law, David Miksha is a litigation professional who understands the unique challenges middle-income Canadians face. As an affordable lawyer in Calgary, he is committed to providing professional legal services with the utmost care, focusing on achieving the best possible outcomes for his clients. Book your consultation with Access Law today!