No, you are not required to use the Standard Form CFA, although you may elect to do so.
While there is no specific template or format required for these types of contingency fee arrangements, unless your client or the person or entity responsible for paying your client’s legal fees is an
organization or the contingency fee agreement is or
approved by the court, there are additional requirements and impermissible terms. You must ensure that the contingency fee agreement is
in writing and includes the statements prescribed in Section 7(2) of
O. Reg. 563/20. These statements explain to clients, among other things, the contingency fee structure, awarding of costs, reimbursement of disbursements, manner of termination, and the client’s right to assess the lawyer or paralegal’s bill. You must also ensure that the agreement does not contain the impermissible terms identified in Section 8 of
O. Reg. 563/20. For more information, see the question “
What terms are not permitted in a contingency fee agreement?” below.
Note that, in addition to the above legislative requirements, unless your client or the person or entity responsible for paying your client’s legal fees is an
organization or you are retained to represent one or more persons in relation to a proceeding commenced under the
Class Proceedings Act, you are also required to comply with the client disclosure, marketing, and fee-related reporting requirements set out in the
Rules or
Paralegal Rules. For more information about these transparency and disclosure requirements, see the sections below.