LawPro can breathe a sigh of relief – a recent decision
suggest that clients are unlikely to succeed in certifying class
actions against their former lawyers based on the terms of their
retainer agreements. Just as contracts contain individual issues, retainer
agreements between lawyers and their clients are fundamentally
individual in nature. In Hodge v. Neinstein, Justice Perell
refused to certify a class proceeding challenging a law firm's
contingency fee agreements because of the lack of common issues
(and abundance of individual issues) present when analyzing
multiple retainer agreements.
Background
The plaintiff, Cassie Hodge, retained a lawyer to pursue her
personal injury claims following a motor vehicle accident. Under
their contingency fee agreement, the legal fees would be 25% of the
damages recovered plus partial indemnity costs and disbursements.
The plaintiff settled her tort claim for $150,000, which her lawyer
apportioned $50,000 to costs and
