Conditional royalty agreements are legal in all provinces of Canada, but with certain restrictions on which cases are allowed to be dealt with on a royalty basis.    In some cases, a lawyer may levy a percentage of recovery in the event of a victory, but must otherwise collect an hourly fee. [Citation required] An explicit agreement must be made between the lawyer and his client for the fees collected to be collected as part of a possible fee agreement and not fees imposed by the Law Society. The contract must be written and signed by both parties.> The lawyer is only entitled to any fees for the services provided if the case he is handling for a client is successful. The law therefore provides that if the lawyer receives a higher tax (which it is normally allowed) due to the high surcharge, this higher tax must not exceed by more than 100% the normal fees that the lawyer is allowed to collect. The law also requires that lawyers` fees do not exceed 25% of the total amount awarded to the client. Let`s use an example. If a lawyer handles your third-party claims and the court gives you R100,000. You and your lawyer did not enter into an emergency agreement.
The lawyer provides you with his normal invoice for the work done. The attorney`s fees depend on the work he/she has done and you will be burdened accordingly. However, if you and your lawyer have entered into an emergency agreement, their fees will be R25,000. Attorneys` fees must not exceed R25000 (25% of R100,000). Other prerequisites for the validity of a possible agreement are that the client must have been warned by the lawyer that there are other ways to fund lawyer`s fees for court costs. . . .