Is the Meter Running? …Straight Talk About Fees

Entrepreneurs want results, service, expertise and value from their legal counsel. But, business legal services are not commodities. A sound working relationship founded on mutual respect and trust is essential.

One of the benefits of being a small firm is that I can offer a lot of flexibility. Sometimes,  the basic $XXX per hour times the number of hours formula is not appropriate for a matter, so I work out a customized fee arrangement with the client.

For example, I can:
	Set-up a regular payment schedule to amortize large upfront costs over several months (e.g., a new business start-up, or leveraged buy-out).
	Establish a high-low arrangement, so the account is a fraction of the normal cost if the deal does not close, and vice versa (high risk, high reward for closing).
	Combine a monthly retainer which reflects a lower cost per hour for estimated legal fees over a year, with ad hoc billing for extraordinary matters which may arise.

Usually, I bill monthly in the conventional manner, by the hour, plus GST & disbursements. My rate varies with the nature of the work from $200-$330 per hour. I work with a very skilled clerk for efficiencies on corporate documents, searches and filings.

Disbursements: When Out of Pocket Isn’t Really Out of Pocket

I believe that most so-called "disbursements" are simply overhead, and should be recovered by me only out of the hourly rate or fixed fee charged. 

Accordingly, I do not bill routine copying, faxing, stationary, file opening or similar costs as disbursements.  If a file requires a lot of copying, I'll get the copying done at commercial rates, say 5¢ a page, not 35¢.

Genuine third party out-of-pocket expenses, such as Corporations Branch filing fees, seals, long distance charges, PPSA searches or third party agency fees are billed as disbursements.

Overall, I exercise judgment when I bill, and I don't nickel and dime my clients. I expect the same treatment back, and prompt payment unless special arrangements are made.