The lawyer undertakes by law to request such fees, and the principal (client), undertakes to settle these.
The German Lawyers’ Remuneration Act is made up of a legal text and the remuneration list. The legal text contains the general requirements, and the list states the individual fee scales.
In the case of out-of-court consulting, the German Lawyers’ Remuneration Act specifies that a remuneration agreement is to be agreed upon. This is based on the hourly rates or, in an individual case, on flat-rate amounts.
Activities such as discussions with the client, reviewing contracts, reading correspondence, meetings with the opposing party or the expert appraiser and the like are deemed settled by way of the business fee set out in the German Lawyers’ Remuneration Act.
The amount of the fees is based on the expenditure on labour, the lawyer’s liability risk and the amount in dispute (value in dispute). The fee table for the value in dispute is stated in the Annex to the German Lawyers’ Remuneration Act.
Enquiries made by telephone, facsimile or e-mail shall give rise to the lawyers’ fees specified by law when the lawyer replies to such enquiries.
If the client is a consumer, and nothing has been separately agreed upon, the fee for initial out-of-court consulting is € 190 plus 19% VAT, in total € 226.10. In the case of commercial clients, this restriction on an increase in the fee does not apply. If the matter is continued out-of-court or in court following the consultation, the consulting fees shall be taken into consideration.
However, in court proceedings the statutory fees may not be undercut by way of agreements. An agreement on remuneration in excess of the statutory remuneration is possible.
The hourly rate in our remuneration agreement corresponds to customary average rates and follows the recommendations of the German Federal Chamber of Lawyers (plus disbursements and VAT). A junior lawyer (lawyer with up to 5 years’ experience) may be authorised for representation at an hourly rate of € 125.
Insofar as the client and lawyer have not entered into a remuneration agreement, the lawyer shall settle on the basis of the statutory fees as a minimum rate.
Whether or not the lawyer’s invoice shall be paid by your legal insurance depends on your insurance.
For more information, please go to the homepage of the German Federal Chamber of Lawyers.
You can find our remuneration agreement in the download section of our website.