What fees are incurred for an out-of-court settlement?
December 13, 2022 | 60,00 EUR | answered by Alice Schulz
Dear lawyer,
My name is Ella Voss and I have a question regarding fee regulations in relation to an out-of-court settlement. Recently, I had a dispute with my landlord regarding a rent reduction due to defects in my apartment. However, we were unable to reach an agreement and no legal action was taken. Instead, we have now reached an out-of-court settlement where my landlord will fix the defects and I will waive a portion of the rent.
Now I am wondering what fees could arise for this out-of-court settlement. I am concerned that I may have to bear high costs even though we did not have a legal dispute. Are there specific regulations or provisions in the fee regulations that I should be aware of? What factors influence the amount of fees for an out-of-court settlement?
I would greatly appreciate it if you could provide me with possible solutions or advice to avoid cost traps and achieve a fair fee arrangement. Perhaps you could also give me recommendations on how to better protect myself in the future from such situations. Thank you in advance for your assistance.
Sincerely,
Ella Voss
Dear Mrs. Voss,
Thank you for your inquiry regarding fee regulations in relation to an out-of-court settlement. It is understandable that you are concerned about potential costs associated with this agreement. I am happy to provide you with some information that may help you assess the fees.
First of all, it is important to know that the fee regulations for lawyers in Germany are governed by the Lawyers' Remuneration Act (RVG). In the case of an out-of-court settlement, there are different ways in which fees can be calculated. The exact amount of the fees depends on various factors, such as the value of the dispute, the scope of the lawyer's work, and the complexity of the case.
In your specific case, where an out-of-court settlement has been reached with your landlord, fees are typically calculated based on the value of the subject matter. The subject matter value usually corresponds to the value of the rent reduction that you have waived. Therefore, it is important that you know the exact amount by which the rent was reduced in order to enable a correct fee calculation.
There is also the possibility of agreeing on a flat fee for the out-of-court settlement. However, this flat fee should be reasonable and proportionate to the value of the services provided.
To avoid cost traps and reach a fair fee arrangement, I recommend discussing the possible fees with your lawyer early on and, if necessary, reaching a written agreement on the costs. It is also important to document all agreements in writing to avoid misunderstandings.
Regarding how you can better protect yourself in the future from such situations, I recommend seeking legal advice early if disputes arise with your landlord or other contracting parties. A lawyer can help you uphold your rights and find an amicable solution.
I hope this information is helpful to you and I am available for further questions. Thank you for your trust and I wish you all the best for the future.
Sincerely,
Alice Schulz, Lawyer
