B.C. Court Reduces Lawyer’s $425,000 Estate Fee to $60,000 in Fee Review Ruling

B.C. judge slashes lawyer’s $425,000 bill for settling grandmother’s will – Image for illustrative purposes only (Image credits: Flickr)

British Columbia – A B.C. Supreme Court registrar slashed a lawyer’s $425,000 bill for handling a grandmother’s estate settlement to $60,000, deeming the charges excessive and indefensible. The clients, siblings who inherited under a contested will, pursued the reduction through a five-day hearing under the Legal Professions Act. The lawyer must also cover their costs for that process, underscoring scrutiny over legal billing in family disputes.

Origins of the Estate Conflict

The case stemmed from the death of a grandmother in August 2023. Her grandson, Michael Arnaldi, initially hired lawyer Andrew Liggett of Sea to Sky Law Corp. to secure the release of her body from the morgue. His mother had blocked the process pending an autopsy, escalating family tensions.

Disputes soon centered on the will. A 2022 version favored the grandchildren, prompting Arnaldi’s mother and uncle to push for an earlier document that benefited the two children more. Liggett took on representation for Arnaldi and his sister in this acrimonious standoff.

After mediation and about 13 months, the four parties agreed to divide the $1.4 million estate equally. No trial occurred, yet the legal fees consumed more than a third of Arnaldi’s share after an initial $35,000 retainer.

Breakdown of the Disputed Charges

Liggett billed 629 hours of his time at $395 per hour, plus 78 hours from staff at $125 per hour, totaling around $425,000. Arnaldi sought a reduction to $70,000, arguing the work did not justify the sum.

Registrar Meg Gaily examined the records closely. She noted fees surpassed $100,000 in roughly five months, tied to just two brief chambers appearances. One entry logged 6.5 hours for a court session that adjourned early.

Evidence indicated unproductive tasks during the retainer period. Much time involved staff reviewing basic court rules and forms, which Gaily ruled as overhead costs not billable to clients.

Court’s Key Criticisms

Gaily described the case as lacking complexity, difficulty, or novelty. She found the billed hours mismatched the tasks, with patterns suggesting clock-running on unnecessary work.

The registrar highlighted Liggett’s practice of charging three percent compounded monthly interest on overdue balances, equaling over 42 percent annually. This exceeded legal lending limits, later adjusted to 35 percent effective January 1, 2025, and approached criminal rates.

Prior Law Society of B.C. discipline against Liggett for accounting issues factored into her assessment. He operates without an unsupervised trust account, a point she deemed relevant to bill scrutiny.

Clashing Accounts from Lawyer and Clients

Liggett defended his fees as reasonable for a contested estate, claiming 30 years of experience. He suggested Arnaldi experienced “settlement remorse” and had not objected during frequent email updates.

Records showed otherwise. The clients, each earning about $50,000 yearly, raised concerns multiple times. Liggett had proposed they borrow to cover bills amid rising charges.

Gaily settled on $60,000 as a fair fee aligned with services rendered. This represented a substantial cut, prioritizing client protection in non-trial resolutions.

Broader Lessons on Legal Fee Oversight

This ruling arrives amid ongoing attention to billing practices in estate litigation. Clients in family will disputes often face high stakes without trials, amplifying fee risks.

Mechanisms like Legal Professions Act reviews offer recourse, as demonstrated here. For modest-income heirs, such protections prevent estates from evaporating into legal costs. The decision reinforces that experience does not justify passing routine firm expenses to clients, promoting fairer practices across the profession.