How are the lawyer’s fees calculated in an out-of-court settlement?
November 14, 2023 | 60,00 EUR | answered by Alice Schulz
Dear Sir or Madam,
my name is Edith Lang and I have a question regarding lawyer's fees in the case of an extrajudicial settlement. In my situation, I have a dispute with another party that we would like to resolve extrajudicially. My lawyer has already assisted me in the negotiation, but I am unsure of how the fees for his services will be calculated in this case.
Currently, I am faced with the situation that we have reached an extrajudicial settlement with the opposing party. My lawyer has been advising and representing me throughout the entire process. Now, I am wondering how the costs for his services are composed and whether I will have to bear them myself or if they can be covered by the opposing party.
My concerns lie in the fact that I am not sure of how lawyer's fees are calculated in such a case and whether I will have to financially bear them. I would like to understand what costs I will incur and if there are possibilities to potentially have them reimbursed by the other party.
Could you please explain to me how lawyer's fees are calculated in the case of an extrajudicial settlement? Are there legal regulations stating who has to bear the costs? And are there possibilities to have the fees reimbursed by the opposing party?
Thank you in advance for your assistance.
Yours sincerely,
Edith Lang
Dear Mrs. Lang,
Thank you for your inquiry regarding attorney fees in an out-of-court settlement. I understand that you are unsure about how the costs for the services of your attorney in this case are calculated and who must bear them. I am happy to explain to you in detail how attorney fees are composed in an out-of-court settlement and what possibilities there are to have them reimbursed by the opposing party.
Attorney fees in Germany are calculated according to the Lawyers' Remuneration Act (RVG). This law regulates the amount of fees that an attorney may charge for their services. The fees are based on the value of the dispute, the type of procedure, and the scope of the attorney's activities. In the case of an out-of-court settlement, attorney fees are usually calculated based on an object value that is derived from the value of the subject matter of the dispute.
In your case, where you have reached an out-of-court agreement with the opposing party, the attorney fees can generally be borne by both parties. However, there is a possibility that the opposing party may be required to cover the attorney fees if their behavior has made the out-of-court settlement more difficult. In this case, you can try to have the costs reimbursed by the other party.
To have the attorney fees reimbursed by the opposing party, it is advisable to address this within the framework of the out-of-court settlement and document it. Your attorney can help you claim the costs and reach an agreement with the other party. If you encounter difficulties in enforcing the reimbursement, you may seek legal assistance to assert your claims.
I hope that I could assist you with this information. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Alice Schulz
Attorney specializing in fee law
