Gary Sugar, a lawyer with the legal department at Toronto’s Precious Metal Capital, entered discussions three years ago with partners at class action specialist firm Kim Orr over a possible move. The firm passed him two claims to draft, allegedly to assess his ability, and some time later, Mr Sugar passed them back a fee note for more than C$31,000.
Not hired
According to a report in Canada’s Law Times, the firm replied in an e-mail message to Mr Sugar: ‘We don not have any intention of paying the invoice you have rendered. We did not hire you to work on the file.’
And within the last few days, Superior Court Justice Edward Morgan has agreed that the firm is not liable for the fees.
Contingency key
At the heart of the ruling, according to the report, was a contingency fee agreement. While the judge acknowledged that the firm should not have expected the lawyer to work free of charge, but, he said, Mr Sugar had agreed to do the work for a firm that he knew operated contingency fee deals. Ruled the judge: ‘It’s not reasonable for him [the lawyer] to have expected to be paid until the defendant as a class counsel in these cases is paid.’
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