Who Covers the Cost of Class Action Lawyers?

One question that is frequently asked is whether plaintiffs have to pay for class action lawyers when pursuing litigation. The answer to this question depends on several factors, including whether the plaintiff or the defendant comes out on top in the litigation, and the province in which the case is filed.

Class Action Lawsuit Definition

A class action lawsuit is a type of legal action that allows for a group of individuals to seek damages from a defendant who is alleged to have caused them harm. There is usually one individual who serves as the representative for the putative Class Members, although there can be more than one Class representative.

Class action lawsuits can be used for legal matters related to privacy breaches, consumer protection, product liability, environmental matters, employment issues, institutional abuse, and mass personal injury.

An individual who is considering filing a class action lawsuit against a defendant may reach out for legal help. In some cases, class action lawyers may reach out to consumers in an effort to find someone to serve as a representative plaintiff for a legal matter they believe would result in a successful class action lawsuit.

Because class action lawyers are typically paid if the case is settled or if they win the case at trial, they often will only pursue a case if they think the potential compensation makes litigation worthwhile.

Class action lawyers are typically paid a percentage of what the Class is awarded. Courts determine the amount lawyers will be paid and will typically limit class action lawyers’ fees to no more than one-third of the settlement amount.

Class action lawsuits are allowed in all Canadian provinces. However, there is much diversity among the provinces regarding the costs and fees generated by class action lawsuits.

Quebec and Ontario have established Class Action Funds that finance class action lawsuits. Class action lawyers may apply for funding to cover their court costs and legal fees. In Quebec, the Class Action Fund is funded by the government. In Ontario, the fund’s resources are drawn from the interest on class action lawyers’ trust accounts.

What Happens if the Settlement Doesn’t Result in Compensation?

Some class action settlements don’t result in compensation for Class Members. Instead, Class Members may be entitled to other valuable benefits, such as injunctive relief requiring the defendant to change their harmful behaviour.

The class action lawyers’ payment will be part of the negotiated terms of the class action settlement. Before lawsuit settlements are finalized, a judge must approve the lawyers’ fees and other settlement terms. The judge will determine what constitutes a reasonable amount for the lawyers to be paid. Typically, the judge will consider the market rates for a lawyer given the lawyer’s years of experience and the amount of time and other resources the class action lawyers put into the case.

Can I Object to Counsel’s Proposed Fees?

If you are a Class Member, you have certain rights once a class action lawsuit has been certified. Depending on the status of the case, you may have the right to object to a settlement or opt out of the class action lawsuit altogether. If a settlement is reached, you may have the opportunity to file an objection to the deal because you believe the proposed lawyers’ fees are unreasonable.

However, the Ontario Court of Appeal recently ruled that a settlement approval order cannot be appealed by Class Members. That means once the settlement is finalized, a Class Member can no longer object to or appeal the attorneys’ fees or other terms of the class action settlement.

How to Find Class Action Lawyers

Finding class action lawyers can be a challenging process. The internet can be a great place to start, but the options can be overwhelming. Top Class Actions makes it easy for consumers to connect with class action lawyers who may be interested in representing them in a lawsuit. Simply submit your information here and a network of class action lawyers will review your case for free.

If you have a potential legal claim, you will be contacted for a free case evaluation. During this consultation, the lawyer will explain your legal rights and the potential next steps you can take. This legal consultation is free of charge and without any obligation.

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