Fee Sharing Agreements In Trouble?

In Bancroft Snell v Visa, 2015 ONSC 7275 ("Bancroft"), a class action involving allegedly improper credit card merchant fees, Justice Perell approved the contingency fee agreement of class counsel, but with an order not to pay any sums toward a fee sharing agreement with other counsel. The fee sharing agreement was reached between class counsel and the Merchant Law Group regarding disputes over carriage of the action in Alberta and Saskatchewan (the "MLG agreement"). Justice Perell's comments suggest a very negative view of fee sharing agreements such as the MLG agreement and will likely have an impact on the resolution of carriage disputes.

Class counsel had commenced actions in British Columbia and Ontario. Settlement discussions were taking place between class counsel and some of the defendants. Around this time, the Merchant Law Group commenced rival class actions in Saskatchewan and Alberta.  The Merchant Law Group's proceedings were going to create delay and