A contingency fee shifts the risk of a lawsuit off the client and onto the lawyer. If there is no recovery, there is no fee. That single feature is what puts many civil claims within reach.
Legal fees are the reason a lot of good claims never get made. Someone is owed money, or has been wronged, but cannot fund a case up front, so nothing happens. A contingency fee agreement is designed to solve exactly that problem. The lawyer agrees to be paid a percentage of what is recovered, and only if there is a recovery. In Ontario these arrangements are permitted and regulated, and understanding how they work tells you whether your case might qualify.
What a Contingency Fee Actually Is
Under a contingency fee agreement, you do not pay legal fees as the case proceeds. Instead, the lawyer's fee is a set percentage of the amount recovered, whether by settlement or judgment. If the case recovers nothing, the lawyer earns no fee. The client generally remains responsible for disbursements, the hard out of pocket costs of running the file, although the agreement can address how and when those are paid, and often they are advanced by the firm and repaid from any recovery.
The appeal is straightforward. You get access to representation without writing a retainer cheque, and the lawyer has a direct financial stake in the result. The interests line up: both sides want the largest recovery the case can produce.
The Rules Behind the Arrangement
Contingency fees in Ontario are governed by the Solicitors Act and its contingency fee regulation, which the province modernized in 2021. The rules require the agreement to be in writing and in a standard form, to disclose the percentage clearly, and to explain how disbursements and taxes are handled. There is a mandatory consumer guide the client must receive. The point of all this is to make sure you understand, before you sign, exactly what share of any recovery the lawyer will take and what you remain responsible for.
"A contingency fee is not a way to avoid thinking about cost. It is a way to move the cost to the end, and only if you win. Read the percentage, read the disbursement terms, and ask questions before you sign."
What Percentage Is Typical
There is no single fixed rate. The percentage reflects the risk and complexity of the case, the likely amount of work, and how strong the claim is. Simpler, higher probability recoveries sit at the lower end. Cases that require significant investment, expert evidence, and a real chance of a fight sit higher. What matters is that the percentage is set out plainly in the written agreement and that you understand it applies to the recovery, with disbursements handled separately. A good agreement shows you a worked example: on a hypothetical recovery, here is the fee, here are the disbursements, here is what you keep.
Where Contingency Fees Apply, and Where They Do Not
Contingency fees fit civil claims where there is money to recover. Debt collection, breach of contract, wrongful dismissal, expropriation compensation, and property and business disputes are common examples. In these matters the recovery funds the fee, so the model works.
They do not fit everything. Ontario law prohibits contingency fees in criminal and quasi criminal matters, and in most family law cases. That makes sense: a criminal defence is not measured by a dollar recovery, so there is nothing to take a percentage of. For criminal work, fees are handled differently, usually as flat fees, which our fees page explains. A matter that has no monetary recovery, or where the defendant cannot pay, is also a poor candidate for a contingency arrangement, because there would be nothing to fund the fee.
Is a Contingency Fee Right for Your Case?
The honest answer depends on the strength of the claim and whether the other side can actually satisfy a judgment. A strong civil litigation claim against a defendant with assets is a natural fit. A weak claim, or a claim against someone with nothing to collect, is not, and no responsible lawyer will take it on contingency, which is itself a useful signal about the merits.
If you have a civil matter and cost is the thing standing in your way, it is worth asking whether a contingency arrangement is available. Our dedicated contingency fees page sets out how it works at this firm, and the first consultation is free.