“Whether a paid account should be treated as an interim or final account is a factual determination. Payment of an interim account creates a presumption that the client was satisfied with the fee charged but that presumption is rebuttable. Clients will obviously be inclined to pay interim accounts promptly in order to maintain a good relationship with their counsel and the fact that interims bills were paid without complaint does not necessarily indicate that the client was satisfied with the work performed or the amount of the bill. It depends on the circumstances.
In Price v. Sonsini, 2002 CanLII 41996, the Ontario Court of Appeal made a seemingly determinative statement regarding the treatment of interim accounts rendered in the course of a single retainer:
…where interim accounts are rendered in connection with the same matter, the limitation period for assessment under the Solicitors Act begins to run from the date of the final account, even if some of the interim accounts have been paid.
The court in Daniels, 2006 CanLII 119 ONSC came to a similar conclusion. Both Daniels and Price were cases involving family law proceedings. Family law litigation is frequently lengthy, the majority of clients are unsophisticated and the final amount of the retainer is commonly adjusted to reflect the outcome of the litigation. All of these circumstances are conducive to treating interim payments as interim payments.”