Statutory basis
The remuneration of an Attorney at Law is in principle governed by the statutory provisions of the German Fees Act for Attorneys at Law (Rechtsanwaltsvergütungsgesetz - RVG).
This Act summarizes the typical work of an Attorney at Law in “charging elements”. It is laid down in the “charging elements” what charging rate the Attorney at Law is to receive for a particular activity. A distinction can be made in this case between fixed charging rates (e.g. for an Attorney’s court work) and general charges (e.g. for an Attorney’s advisory work). The usual charging framework ranges from 0,1 to 2,5 of a full fee.
The level of a fee is determined by the value of the matter, the “value of the item”. Unless otherwise agreed, we charge our fees according to the value of the item.
The remuneration for a specific piece of work can accordingly be calculated, using fee tables, in respect of the value of every item and every charging rate.
The Attorney at Law determins at his reasonable discretion the level at which he will set the fee within the charging framework. Account is taken here of the significance and difficulty of the specific case, the consequences for the client and also the client’s assets and income.
Fee agreements
It is also possible to charge fees in accordance with a fee agreement entered into on an individual basis. It must be borne in mind in this case that the agreed remuneration of the Attorney at Law in judicial proceedings must not be less than the statutory fees.
For consumers we would particularly like to point out the possibility of an initial consultation, which costs no more than EUR 190.00, plus a standard amount for disbursements and Value Added Tax, irrespective of the value in dispute. In an initial consultation of this kind, it is possible for the Attorney at Law, using the information submitted to him, to give a provisional assessment of the case and indications about possible further steps and about the costs to be expected.
It is not however possible, simply for reasons of liability, to conduct an in-depth examination of a matter as part of an initial consultation.
We must not fail to mention a fact at this point which many clients overlook in connection with legal fees: an Attorney at Law’s fee does not merely represent remuneration for his work but also reflects the fact that he is liable for any losses arising from his work. All Attorneys at Law are obliged by law to take out professional liability insurance for such cases, so that the client can be sure of receiving compensation in the event of any cases of liability. The insurance premiums incurred in this respect represent a substantial costs item for all Attorneys at Law.
We will be happy to discuss the question of a fee agreement reasonable for both sides in an individual case. If you require advice going beyond an initial consultation, you can of course discuss an agreement about an hourly fee or fixed overall rates with us.
- Our hourly rates are normally between EUR 150.00 and EUR 250.00, in each case plus standard disbursements and Value Added Tax. We charge for each 15-minute period or part thereof. We would particularly like to point out here the possibility of agreeing an hourly fee for regular telephone advice. The benefit for the client is that he can turn to his Attorney even with relatively minor problems without having to worry about high fees dependent on the value in dispute.
- We offer flat-rate fees in circumstances in which, on the basis of our experience, we are able to assess the amount of work which is likely to be required. This applies, for example, to the drafting of specimen contracts or general terms of business.
For further information about the calculation of legal fees, may we also refer you to the Bundesrechtsanwaltskammer [German Federal Chamber of Attorneys at Law] website.