| Lawyers Fees |
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 Download the "Rechtsanwaltsvergütungsgesetz" (RVG - Law Concerning the Remuneration of Lawyers) as a PDF |
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General basics |
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| In Germany, fees for legal work are billed either according to the law (from 1.7.2004 RVG = Rechtsanwaltsvergütungsgesetz) or on the basis of fee arrangements. Fee arrangements are always possible, instead of billing the statutory fees. However, the provisions of Art. 49b BRAO and Art. 4 RVG must nevertheless be observed. Accordingly, if the agreed fees are higher than the statutory fees, the formal requirements of Art. 4 RVG must be observed. Furthermore, if the lawyer performs juridicial work the agreed fees must not be less than the statutory fees. Higher fees than the statutory fees can be agreed at any time. |
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| The Rechtsanwaltsvergütungsgesetz (Law concerning the remuneration of lawyers) consists of the wording of the law and in addition the remuneration schedule. The wording of the law contains the general legal fee regulations. The remuneration schedule contains the individual fee elements. |
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| The law concerning the remuneration of lawyers provides for several fee types. These are defined either as fixed or sliding-scale fees. The sliding-scale fees are either dependent on the value of the subject matter or case, so-called sliding-scale rate fees, or a minimum and maximum amount is specified, so called sliding-scale sum fees. The amount of the fee dependent on the subject matter is taken from the fee table, issued as an annex to Art. 13 RVG. The respective appropriate fee within the specified fee scale is to be determined at reasonable discretion for each individual case, taking into account all circumstances, above all the scope and difficulty of the legal work, the significance of the matter dealt with as well as the client's income and financial circumstances, (Art. 14 Para. RVG). In addition, a particular liability risk for the lawyer can also be taken into account in stipulating the fee. |
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| Out of court work (non-contentious work) | |
| Fees for out of court advice are calculated according to No. 2100 VV RVG. From 1.7.2006, the fee for out of court advice should be fully released. There will then be a regulation on the basis of which the lawyer should reach a fee agreement. If an agreement is not concluded the fees are charged according to civil law, i.e. in particular according to Art. 612 BGB. If the client is a consumer and a fee arrangement has not been agreed the lawyer's fees for out of court advice and for the remuneration of expert opinion from 1.7.2006 are maximum 250 Euro. The initial consultancy fee is capped at maximum 190 Euro for the first consultation with a consumer. |
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| Out of court representation fees are based on No's 2400 ff. VV RVG. The fee scale is 0.5 to 2.5 for the business fees. Further fees are no longer planned. The comment on No. 2400 VV RVG must be noted. According to this, the lawyer can only charge a higher fee than 1.3 times the basic rate if the work was extensive or difficult. Corresponding threshold values are provided for the business fees for other legal fields. For an out of court settlement the settlement fee factor according to No's 1000 ff. VV RVG is 1.5. Settlement exists if the intermediation of the lawyer brings about the conclusion of a contract through which the dispute or uncertainty between the parties is settled by way of a legal relationship. |
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| Representation in court (contentious work) | |
| For representation in court by a lawyer, a procedural and a hearing fee are usually incurred according to No's 3100 ff. VV RVG. Part 3 of the RVG contains separate provisions for each of the different procedures and proceedings. In court proceedings the proceedings fee rate is 1.3 and the hearing fee rate is 1.2, so that in general 2.5 rate fees are incurred. If the parties come to a settlement after a legal dispute has become pending before a court, the settlement agreement fee rate is 1.0. |
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| Criminal matters | |
| Criminal matters are covered by Part 4 of the remuneration schedule. The basic fee for the initial familiarisation with the facts of the case is always incurred, in addition to a procedural and possibly a hearing fee during the preliminary proceedings / preliminary inquiry and in the court proceedings. Further, a differentiation is provided between the remuneration of defence lawyer chosen by the defendant and assigned counsel (counsel for the defence appointed by the court). The assigned counsel's fee is 80% of the average fee of the defence lawyer chosen by the defendant. |
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| Administrative fine matters | |
| Part 5 of the remuneration schedule contains separate regulations for administrative fine matters. They are modelled on the regulations for criminal proceedings. I.e. the client incurs a basic fee, the fee for work in the administrative proceedings, the fee for defending the client in court and other fees for individual activities. |
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| Disbursements | |
| Disbursement elements are covered by Part 7 of the remuneration schedule. Here too, apart from or instead of the statutory regulations, agreements are always possible and are advisable if, e.g. extensive annexes and exhibits require photocopying or travel is to be undertaken on behalf of the client. |
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| Overall. the new fee law is very flexible due to its broad fee scale. It is more performance related, as the individual activities of the lawyer are either taken into account by explicit regulations or by further fee scales. Fixed fees are only provided for where they are necessary for cost reimbursement reasons or due to separate provisions for legal aid or court-assigned defence. |