If the lawyer resolves the legal conflict, an settlement fee will be charged

 

Your lawyer may also demand the settlement fee if his work results in a contract that resolves a legal dispute. Here he is entitled to a 1.5-fold fee. With a value in dispute of 5000 euros, the 1.5-fold fee is 1.5 times the simple fee (303.00 euros), which results in an amount of 454.50 euros.

If it is clear which fees are appropriate for the scope of out-of-court legal advice in accordance with the RVG, a lump sum for postal and telecommunications of a maximum of 20 euros and VAT of 19% will be added.

If there is a value in dispute of 5000 euros and your lawyer has helped you to reach an out-of-court settlement, the business fee (1.3 fee), the settlement fee (1.5 fee) as well as the communication fee and VAT result in total lawyer's fees of 1033.40 euros.

Lawyers' fees in court proceedings


If your lawyer is to take legal action, he is entitled to charge a procedural fee and an appointment fee. Your lawyer may charge the procedural fee if he represents you in the course of a trial. This fee is usually due with his first activity, which he carries out for this purpose. This is usually the filing of a lawsuit. The procedural fee is usually a 1.3-fold fee.

The business fee incurred in out-of-court proceedings is also relevant in court proceedings. If your lawyer has already acted out of court for you in the same proceedings and has charged a 1.3-fold business fee for this, the 1.3 procedural fee will no longer be due in full as soon as your lawyer goes to court for you.

If your lawyer has demanded a business fee in out-of-court proceedings, this will be reduced in court proceedings


In such cases, the said 1.3 procedural fee is usually reduced by half, by a maximum percentage of 0.75. With a value in dispute of 5000 euros, the 1.3 procedural fee of 391.30 euros is usually reduced to a 0.65 fee of 195.65 euros. This is due together with the 1.3 business fee in the amount of 391.30 euros.

In addition, there are other cases in which the procedural fee will be cheaper for you. This can happen, for example, if the lawyer's assignment is terminated before he has filed the lawsuit or before he has attended a court appointment. For example, if you finish the assignment before your lawyer has filed the lawsuit, your lawyer may only charge a 0.8 fee for this.

On the other hand, the appointment fee occurs if your lawyer represents you in a hearing. A fee of 1.2 times is usually charged for this. However, if a default judgment is issued – i.e. the opponent does not appear at the hearing – your lawyer may only charge half of the appointment fee.

If the amount in dispute is 5000 euros, a total legal fee of 925.23 euros is incurred for legal representation in the case of a 1.3 procedural fee and a 1.2 appointment fee including 19% VAT and 20 euros communication fee.

Note: Even if you win the procedure, you will have to pay the fees for the time being


Even if you are the winner of a legal dispute, you are first obliged to pay the lawyer's fees charged for the time being. The reimbursement of the lawyer's fees to the winner of the court proceedings takes place only afterwards in the so-called cost determination procedure.

The initial consultation as an exceptional case


Other regulations apply to the initial consultation, the first assessment of the client's legal situation. If you hire your lawyer as a private individual, he may charge a maximum of 190 euros plus 19% VAT. Deviations from this are only possible if you have expressly agreed otherwise with your lawyer. If, on the other hand, you hire your lawyer as an entrepreneur, he is entitled to demand a business fee in accordance with the RVG.

Can your lawyer also demand an advance?


On the one hand, according to the RVG, your lawyer is only entitled to charge his fees as soon as he has executed your order. On the other hand, he also has the option of demanding a "reasonable advance". This is possible for fees that have already been incurred as well as for fees that are expected to arise. The reason is that for a lawyer, prolonged litigation can pose a financial risk, especially if he represents clients in several cases at the same time.

However, if you have made a higher advance payment than lawyers' fees, your lawyer is obliged to repay the surplus. If the opponent loses in court and has to pay the winner's legal fees, the winner will receive back the costs that he has advanced to his lawyer.

There is now no reason to fear that you will be surprised by unexpected advance demands. Several lawyers are accommodating and accept the payment of the advance in installments.

Is a fee payment also allowed?


Theoretically, the client and lawyer have the opportunity to agree on a lump-sum remuneration (such as an hourly wage or a lump sum). However, this may only fall below the statutory lawyer's fees in out-of-court proceedings. Caution: If the fee was higher than the statutory costs and if there are legal proceedings in which the other party loses, the latter only has to bear the legal costs, the respective client the rest.

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