Judge slams lawyer's proposed fees, then slashes them
A Nova Scotia Supreme Court judge has delivered a stinging rebuke to a Cape Breton lawyer for the fees he sought to charge a man whose two children were seriously injured in a traffic collision.
The children, aged 11 and 8, were airlifted to hospital in Halifax in the summer of 2014 after they were hit by a vehicle in a marked crosswalk on a straight stretch of road in Glace Bay.
The older child, a girl, required several surgeries and the use of both a wheelchair and a walker before she regained full mobility.
The children's father retained Duncan MacEachern of the Sydney law firm Lorway MacEachern to negotiate with the insurance company representing the driver.
In a decision published Thursday, Justice Frank Edwards repeatedly questioned the terms of the contract MacEachern had the father sign and the money he was demanding in payment.
What caught the judge's attention
The initial contract called for MacEachern to be paid 35 per cent of any settlement he won, or legal fees charged at the rate of $300/hour. MacEachen subsequently had the father sign an amended agreement that raised the hourly rate he would charge to $360/hour.
"What caught my attention in this contingency agreement was the pay-if-you-lose clause," Edwards wrote. "Counsel was going to get paid no matter what the outcome."
MacEachern reached an agreement with the driver's insurer that would be worth approximately $95,000 per child, although one settlement still needs to be approved by the judge. The lawyer has already received $31,500 in fees involving one case, and last month sought court approval for at least $19,805 involving the second child.
Edwards questioned why MacEachern pursued separate settlements for the two children when there was a great deal of overlap in the two cases. Edwards said in some cases MacEachern billed twice for the same work.
The judge described the cases as fairly straightforward.
"No special skill was required beyond what one would expect from any reasonably competent personal injury lawyer."
'To impute wrongdoing is grossly unfair'
The judge also questioned whether MacEachern pushed hard enough.
"My feeling is that most lawyers would have pushed harder and not have settled so early."
MacEachern made it clear during the hearing last month that he was unhappy with the suggestions made by the judge.
Edwards even included a letter MacEachern wrote to the court in his decision. In that letter, MacEachern complained there was no suggestion that the father was forced to enter into the agreement, "nor is there any indication to suggest the arrangement was unfair."
"To impute wrongdoing is grossly unfair. Compensation is sought upon the contracted amount of 35%," MacEachern wrote.
The judge said MacEachern's letter shows the lawyer doesn't appreciate the power imbalance that existed between himself and the client.
'Demonstrates no contrition'
The judge disallowed the 35 per cent figure in the contract MacEachern had the father sign. He also reduced the fees MacEachern wanted to collect in the second case, from $19,805 to $15,300.
"This case is disturbing on a number of levels," Edwards wrote. "Mr. MacEachern demonstrates no contrition. In fact, he appears to be indignant about being questioned about his work and, in particular, about his account."
CBC News reached out to MacEachern for a response to Edwards's comments. MacEachern said he would be responding, but not through the media.
