5. Litigation
a. [Redacted]
b. [Redacted]
c. Litigation Costs – May 2024
The federal government continues to support open, transparent and accountable government by sharing total legal costs where it is possible to do so while supporting the proper functioning of our legal system.
- The Attorney General of Canada has responsibility for all civil litigation for or against the Crown, any department, or Crown agent corporations.
- The number of litigation files that Justice lawyers and paralegals have worked on in the last fiscal year has remained stable. At the end of March 31, 2024, that number was around 43,000.
- In most of these cases, the Crown did not initiate the proceedings but rather acts as a defendant or respondent.
- The specifics of the legal costs on litigation files are protected by solicitor-client privilege and in some cases litigation privilege, which are critical for the proper functioning of our legal system.
- However, as part of our commitment to open and transparent government, our government has, when possible to do so, responded to requests about costs and waived solicitor-client privilege to the extent of disclosing the total legal costs associated with certain files or groups of files.
- Litigation files are typically handled in house, by Department of Justice officials, who are salaried public servants. The government does not, in those cases, incur expenses for external legal fees.
- To account for the legal services provided by Department lawyers and paralegals, the Department can establish a notional amount. The notional amount is calculated by multiplying the total hours recorded in the responsive files for the relevant period by the applicable approved internal legal services hourly rates.
- Question: Have the litigation costs increased in the last few years?
- Answer: Yes, litigation costs have increased in the last few years.
- Question: Where does the increase come from? Is it limited to one area?
- Answer: The increase comes from a variety of client departments and agency files. It has been more pronounced in some areas, including in support of tax, Indigenous and Immigration matters, class proceedings, and the Public Inquiry into Foreign Interference.
Background
Specific Requests for Legal Costs
In the last year the federal Crown has waived solicitor-client privilege to the extent of disclosing the total legal costs associated with certain files or groups of files in response to a number of Parliamentary Questions seeking legal costs information and we continue to respond to these requests.
Total Legal Costs include Notional Amounts and Actual Costs
Department of Justice lawyers, notaries and paralegals are salaried public servants and therefore no legal fees are incurred for their services. A “notional amount” can, however, be provided to account for the legal services they provide. The notional amount is calculated by multiplying the total hours recorded in the responsive files for the relevant period by the applicable approved internal legal services hourly rates. Actual costs are composed of file related legal disbursements paid by the Department and then cost-recovered from the client-departments or agencies, as well as the costs of legal agents who may be retained by the Minister of Justice to provide litigation services in certain cases.
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