Contents
- How much does a long-term disability lawyer cost?
- How do long-term disability lawyers get paid?
- Summary: Cost of hiring a long-term disability lawyer
- Other legal costs in a long-term disability case
- How much can you get from long-term disability in Canada?
- Fees in hiring a long-term disability lawyer: Balancing costs and representation
When there are disputes regarding a person's long-term disability benefits, parties rely on the services of a lawyer. But how much does a long-term disability lawyer cost, and what are the alternatives for those financially challenged?
In this article, we'll discuss the costs of hiring a long-term disability lawyer, including other money matters that come with cases involving disability benefits. For more information about their fees, you can also ask a Lexpert-ranked lawyer directly.
How much does a long-term disability lawyer cost?
In Canada, the costs of hiring a long-term disability lawyer can range from hundreds to thousands of dollars. The specific amount that a client will have to pay depends on several factors, including the:
- lawyer's scope of work (e.g., for consultation only or for filing a claim)
- client's legal matter (e.g., if the case is simple or complex)
- legal expertise and experience needed to handle the client's case
- common fees accepted as the standard in a city or province
Aside from these factors, the costs of a long-term disability lawyer will depend on their negotiations with the client. However, if the parties have agreed on an amount, they both must honour that agreement.
Watch this short video about one of the many ways on how long-term disability lawyers get paid in Canada:
Want to know more on how much a long-term disability lawyer costs in Canada? Contact any of the best long-term disability lawyers in Canada as ranked by Lexpert.
How do long-term disability lawyers get paid?
As with any other contract, the client and their lawyer may agree on certain terms over the legal fees and other charges. For this, there are several payment arrangements that can be made for the client's specific legal matter.
To protect both the client and the lawyer, a retainer agreement is immediately created once the lawyer has decided to take up the case. In this document, the payment arrangement agreed by both parties will be specified, so that there are no hidden costs and charges.
Below are some of these arrangements, including the estimated costs. Note that only the lawyers who the clients consulted or hired can specify the actual costs for their services.
Consultation fees: $50 to $500
A one-time consultation fee from a long-term disability lawyer may cost between $50 and $500. Some lawyers can do consultations on either:
- a per hourly basis
- a fixed fee basis
The fees will depend on:
- the length of the consultation
- other documentation that the client asks (e.g., opinion letter)
Initial consultations can also be included in other payment terms, such as contingency fee arrangements, making the initial consultation free of charge. In such a case, the client won't have to pay consultation fees immediately, since these are included in the total cost.
Flat rate: $500 to $100,000
Lawyers' fees can also be charged at flat rates, which will largely depend on the amount of work required. Below are some of the flat fee ranges:
- $500 to $15,000 for internal representation: initially representing the client for filing a claim in court or appeals with the insurer
- $5,000 to $100,000 for full legal representation: may or may not include a retainer's fee, covering legal matters from start to finish
Flat rate arrangements are popular for one-time legal services, such as paid consultations or for plain help with applications for disability benefits. However, it can also be used to hire a lawyer for longer periods, especially when a case drags on for years.
Contingency fees: 25% to 40% of the total award
When a client cannot afford the costs of a long-term disability lawyer, a contingency fee arrangement is an option. This is one way an insured person already facing financial difficulties can afford the costs of hiring a lawyer.
Here, the lawyer will get a certain amount or percentage of the total benefits, settlement, and/or damages that will be awarded to the client. However, contingency fees also have a downside: when the client receives nothing, the lawyer also gets zero.
Watch this video to learn more about contingency fee arrangements:
For more information on contingency fees and how much a long-term disability lawyer costs, reach out to the Lexpert-ranked best law firms for long-term disability in Canada.
Advantages of contingency fees
Still, contingency fees are one of the most common terms of payments for long-term disability lawyers. Here, the client:
- does not have to pay legal fees up-front, even when the lawyer takes up the case
- is not tied to the usual hourly rate of lawyers, which makes the costs too expensive
- gets the full service of lawyer, from claims applications to appeals if it is denied
Rate of contingency fee plan
In Canada, the costs of a long-term disability lawyer under a contingency fee plan can be any of the following:
- specific percentage rate: this can range from 25 percent to 40 percent of the total award that will be given to the claimant; common rate is at 30 percent or roughly one-third of the total amount
- fixed amount: the client and the lawyer may agree on a fixed amount, which is based on the projected amount that may be awarded to the insured, plus the lawyer's disbursements
This is why it is also called percentage fees or success fees; because a percentage of what the client will receive is paid to the lawyer, and it depends on the success of the case.
Summary: Cost of hiring a long-term disability lawyer
| Fee Arrangement | Estimate Costs |
|---|---|
| Consultation Fees | $50 – $500 |
| Flat Rate | $500 – $100,000 |
| Internal Representation | $500 to $15,000 |
| Full Legal Representation | $5,000 to $100,000 |
| Contingency Fees | 25% to 40% of the total award/settlement |
Other legal costs in a long-term disability case
Aside from figuring out how much a long-term disability lawyer will cost, a client must find out what the other legal costs and their terms of payment are. These costs are called disbursements and are separate from what the client pays for the lawyer's services.
These disbursements include:
- court filing fees
- photocopying costs
- medical report fees
- expert assessments
- fees for process servers
How disbursements work
Usually, they are paid in advance by the lawyer or the firm, so that the client's case will not be delayed. This is commonly done along with contingency fees arrangements, especially when the client is short in money.
In turn, the actual cost of disbursements is paid by the client upon receiving the benefits or settlement after the case is closed. The client and their lawyer may also agree that it will be on a contingency basis.
In summary, here's how disbursements work:
- if agreed, the lawyer may advance the costs of disbursements
- the client pays the lawyer back once they get their benefits and other awards
- if a case is won, the client can also reimburse their lawyer after the losing party pays
It is important that clients understand these other legal costs to prevent any disputes with their long-term disability lawyer. This is why black-and-white agreements between the client and the lawyer are drawn up at the start of the engagement.
How much can you get from long-term disability in Canada?
Knowing how much a client will get from long-term disability insurance can help calculate how much a long-term disability lawyer will cost. While every insurance plan is different, most of these will repay the insured employee with a percentage of the basic or normal salary, at the rate ranging from 60 percent to 70 percent.
The period that the insurance plan will provide the employee with long-term disability benefits will also depend on the contract:
- some may provide for a maximum number of years, while some may vary depending on the disability that the employee has suffered
- benefits may be provided for up to two years, with the extensions based on the insurance plan or contract
Some insurance companies also offer a settlement with the claimant, either before or when a case is filed for long-term disability benefits. It can be released on a lump-sum or on a periodic basis (e.g., monthly, quarterly, yearly).
The amount of settlement that is worth the claimant's case must be consulted with the lawyer since there are several factors to consider in computing a worthy settlement.
Fees in hiring a long-term disability lawyer: Balancing costs and representation
The cost of hiring a long-term disability lawyer in Canada depends on many factors, including the complexity of the case and the fee arrangements. Understanding these basics can help claimants plan what to do next.
Those facing a dispute with an insurer do not have to be alone. Many firms are willing to explain their billing practices in plain language and offer flexible arrangements. Anyone who wants to know more about these fees can speak directly with a Lexpert-ranked long-term disability lawyer before deciding how to move forward.
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