Trials are expensive. Most lawyers work really hard to settle cases and avoid trials. People simply cannot afford to go to trial. But when the other party is unwilling to be reasonable and settle the case, the only justification for incurring the cost of a trial (prep and attendance) is the long-standing rule that the successful party is presumptively entitled to recover their legal costs.
Of course, the entitlement to costs is always in the judge’s discretion. Judges regularly fix costs payable to successful parties using a long list of factors such as each party’s behaviour, time spent, offers to settle, indemnification, reasonableness and proportionality. The hourly rates of the legal team are part of that consideration.
But did you know that ‘Toronto’ rates are considered too steep?
Read these 5 Costs Endorsements:
Case #1: “[5] In exercising my discretion in terms of fixing appropriate partial and substantial indemnity rates, I am, of course, mindful of my obligation to take into account all of the factors enumerated in rule 57.01(1), and I have done so. In fixing an appropriate rate, at the end of the day, quantum must be guided by overriding principles of reasonableness, that is, the reasonable expectation of both parties. In his materials Mr. Baldwin indicates that his full indemnity rate is $425.00 per hour. Principles of fairness would dictate that the parties would expect that things like hourly rates would bear some resemblance to what would be considered reasonable in the area where the case was tried. All counsel involved in this matter practice in the Belleville area…” [Middleton v. Municipality of Highlands East, 2013 ONSC 2027]
Case #2: “[19] The defendant argues that the time spent on the file is excessive. The defendant also takes issue with the hourly rates claimed which, during the course of argument, were described as “Torontoesque”. [20] Mr. Bonn candidly acknowledged that he has never sent a client a bill based on an hourly rate of $850. Most of the work that he does is on a contingency basis. The hourly rate is therefore notional. Nevertheless, Mr. Bonn argues, it is a competitive rate having regard to other senior members of the personal injury bar, both in and outside of Toronto. [Canfield v. Brockville Ontario Speedway, 2018 ONSC 3288 (CanLII)]
Case #3: “[22] It is entirely reasonable for the clients to select the lawyers of their choice. However, if that selection takes them out of the jurisdiction where the matter is heard, it is unreasonable to expect that the unsuccessful party pay the lawyers’ hourly rates from another geographical location.” [Kaufman LLP v. Kechchian et al. 2021 ONSC 4160]
Case #4: “[48] I am concerned with the Defendant’s actual rates. The rates charged by counsel for the Defendant ranges between $954 per hour for senior counsel to a $346.50 hourly rate for an articling student. It is noted that counsel for the Defendant work in the City of Toronto. In my opinion, these actual rates are excessive and unreasonable, in our geographic location. There are seasoned and experienced counsel practicing in the City of Ottawa that are charging less than the articling student’s hourly rate. [49] The Defendant retained lawyers who are based in the City of Toronto, and that is their choice. However, if that selection takes them out of the jurisdiction where the matter is heard, it is not reasonable to expect that the unsuccessful party pay hourly rates from another geographic location. I do not accept that a reasonable person would expect to pay the actual hourly rates of counsel for the Defendant, considering that its a wrongful dismissal case and it was commenced in the City of Ottawa.” [Brahma v. HR Services, 2022 ONSC 2645]
Case #5: “[25] I find that the hourly rate the Applicant’s counsel and his employees for whom he seeks reimbursement is not in keeping with the hourly rates for counsel who regularly work in family law in the Ottawa area. Counsel for the Applicant is from Toronto and the hourly rates are out of touch with the Ottawa family law legal community. This is particularly the case for the student-at-law and the law clerk whose time is billed out at $265.00 per hour. I have never seen such hourly rates in the Ottawa area. [Abdul-Ridha v. Kandil, 2025 ONSC 6228]
There you have it. If you take on a case in a court outside Toronto, buyer beware. The successful litigant paying ‘Toronto’ lawyer rates may not be indemnified if they could have used local counsel.
The message is clear: the community in which the litigation is heard sets the benchmark. High-priced Toronto counsel appearing in other jurisdictions cannot assume their full rates will be recoverable.
As costs pressures rise, as clients become more cost-sensitive, and as court resources remain strained, we can expect scrutiny of lawyer hourly rates to become more frequent, more critical and more consequential.
Post-script: In Canada, federally appointed judges earn ~$400,000 per year and receive ~8 weeks of vacation per year, which translates to ~$227 per hour.
Steve Benmor, B.Sc., LL.B., LL.M. (Family Law), C.S., Cert.F.Med., C.Arb., FDRP PC, is the founder and principal lawyer of Benmor Family Law Group, a boutique matrimonial law firm in downtown Toronto. He is a Certified Specialist in Family Law, a Certified Specialist in Parenting Coordination and was admitted as a Fellow to the prestigious International Academy of Family Lawyers. Steve is regularly retained as a Divorce Mediator/Arbitrator and Parenting Coordinator. Steve uses his 30 years of in-depth knowledge of family law, court-room experience and expert problem-solving skills in Divorce Mediation/Arbitration to help spouses reach fair, fast and cooperative divorce settlements without the financial losses, emotional costs and lengthy delays from divorce court.
Editorial note: This article was first published on LinkedIn in November 2025 and is republished here for reference.
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