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How is the compensation of my lawyer composed in fee law?

Dear lawyer,

I recently enlisted the services of a lawyer and I am now somewhat confused about how the remuneration is composed in the fee law. I hope you can help me with this and answer some of my questions.

First of all, the initial situation: I hired the lawyer because I am in a legal dispute with my landlord. The lawyer has represented my interests and taken care of all legal matters. Now, I am wondering how the remuneration for his services is composed and what costs I will incur.

The current situation is as follows: The lawyer has billed his activities and sent me an invoice. This invoice lists various items, some of which are not entirely clear to me. For example, I do not understand what exactly a basic fee is and how it is calculated.

My concerns are that I do not know exactly what costs I will incur and whether the lawyer's billing is correct. I would like to understand how the remuneration is composed in the fee law and if there are ways to minimize the costs.

Therefore, my question to you: Can you explain how the remuneration of my lawyer is composed in the fee law and what costs I will incur? Are there ways to minimize or reduce the costs? I would be very grateful if you could assist me with this.

Thank you in advance for your help.

Sincerely,
Hanna Wolf

Ralf Schröter

Dear Mrs. Wolf,

Thank you for your inquiry regarding the compensation in fee law related to the services of a lawyer. I understand that billing and associated costs can often be confusing. I would be happy to explain to you in detail how the compensation in fee law is composed and what costs you can expect.

First and foremost, I would like to point out that the compensation of a lawyer in the German legal system is regulated by the Lawyers' Remuneration Act (RVG). This law determines how the fees for the activities of a lawyer are composed.

The basis for the calculation of the compensation is the so-called fee table, which is defined in the RVG. In this table, various fee rates for different activities of a lawyer are listed. The most important fee categories include the business fee, the procedural fee, and the appointment fee.

The business fee is the basic fee that applies to the general activities of a lawyer. It is calculated according to a specific fee rate that varies depending on the value of the dispute and the effort involved. The procedural fee is charged when the lawyer acts in court and performs procedural actions. The appointment fee is charged for attending court appointments.

In addition to these fees, expenses such as copying costs, postage, or travel expenses may also be invoiced. However, these must be separately considered and documented.

It is important to note that the costs for the activities of a lawyer can vary depending on individual agreements and effort. To minimize costs, I recommend that you discuss the fees with your lawyer in advance and possibly make a fee agreement.

If you have any doubts about the correctness of your lawyer's billing, you can have it reviewed. You have the option to have the invoice reviewed by the local bar association or to hire a lawyer to review it.

I hope that this information is helpful to you and that you gain a better understanding of compensation in fee law. If you have any further questions or need assistance, I am at your disposal.

Sincerely,
Ralf Schröter, Lawyer

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Ralf Schröter