An Ontario private member's bill that suggests capping contingency fees for personal injury lawyers would only further hurt injured plaintiffs, says Toronto lawyer Kevin Marshall. The bill, from former Progressive Conservative leader Tim Hudak, proposes a 33 per cent cap on damages paid to lawyers or paralegals in a successful claim.
But placing a cap on contingency fees is not realistic because it doesn't reflect the fact that all claims are different, requiring varying levels of effort on the part of the lawyer, says Marshall. In the end, it would likely result in lawyers taking on fewer risky cases (those with higher percentages) – therefore hurting individuals who need legal assistance with their claims.
"Hudak wants to go after the so-called 'greedy personal injury lawyers' when, in fact, the cap would only help the insurance company because they would have less claims to deal with," Marshall says. "Lawyers simply won't take on very risky claims because it doesn't make good business sense." Read more here