Legal fees ,what you need to know and pay attention to !

 

Legal fees - what you need to know  and pay attention to!   

 The amount of fees that your lawyer may charge for advising and representing his clients is regulated in the Lawyers' Remuneration Act (RVG). In most cases, the basis of the fees is the value in dispute of the proceedings, also known as the value of the subject matter. For this purpose, the decisive factor for the fees is which order your lawyer carries out for you.

The most important facts

  • Depending on whether your lawyer represents you in or out of court, different fees may be charged.
  • Special provisions apply to an initial consultation.
  • An advance and a fee payment are also permitted.
  • Even if you win the legal dispute, you must first pay the lawyer's fees before they are refunded to you in the subsequent cost determination procedure.

Lawyers' fees in out-of-court proceedings

If your lawyer represents you out of court, either a business fee or an settlement fee may be due.

Your lawyer may charge the business fee if he has taken over an out-of-court assignment for you, such as the drafting of a contract. In technical language, such an activity is called a business.

However, the question of when the lawyer carries out a business and can demand the business fee often leads to disagreement between lawyer and client. According to the Lawyers' Remuneration Act, a business also includes obtaining information, which covers a variety of different activities.

A common example is determining the address of a debtor. The typical procedure would be a lawyer's letter by post. However, a telephone call can also be sufficient. So the rule of thumb is that the business fee can arise as soon as your lawyer appears for you to the outside world.


1-fold fee, 0.5-fold fee, 2.5-fold fee – the value fee tables in the RVG 


From here on, the value fee tables according to RVG must be included. As Annex 1 of the Lawyers' Remuneration Act (RVG) explains, an important factor in the amount of lawyers' fees is the expense incurred by your lawyer in the performance of his or her duties.

In out-of-court proceedings, it is permissible for your lawyer to charge a business fee that is at least 0.5 times and a maximum of 2.5 times the so-called simple fee. The simple fee is determined using the calculation table listed in Annex 2 of the Lawyers' Remuneration Act (RVG).

  • If the amount in dispute is 5000 euros, there is a simple fee of 303.00 euros.
  • If there are no indications for determining the amount in dispute, an amount of 5000 euros is usually assumed.
  • With a value in dispute of 5000 euros, the 0.5-fold fee is 151.5 euros and the 2.5-fold fee is 757.50 euros.

    These amounts are made by multiplying the simple fee by the relevant factor (0.5, 2.5).
  • In most cases, lawyers in out-of-court proceedings may charge a fee that is 1.3 times the simple fee specified in Appendix 2 RVG. This amounts to 393.90 euros for a value in dispute of 5000 euros. www.lawyerlabo.com


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