Alternative Dispute Resolution Remuneration for the provision of legal services

Information on court resolution of disputes between lawyer and client.

Out of court solution of consumer disputes in the area of a dispute between lawyer and client -consumer contracts - for the provision of legal services within the meaning of the Act no. 634/1992 Coll., On Consumer Protection, commissioned to the Czech Bar Association, based in Prague ( Chamber mediates talks between the consumer - the client - and the lawyer in cases where the Chamber turns to the consumer requests for extrajudicial settlement of the dispute with a lawyer - legal services provider. ADR shall be at no charge and the parties will bear the costs themselves. Consumer (client) shall submit the request within one year.

Detailed information on the extrajudicial resolution of consumer disputes, including their initiation, can be found on the internet website of the Czech Bar Association.

Remuneration for the provision of legal services

Advocacy is exercised regularly for a fee and the lawyer has the right to ask the client for an adequate deposit for services. If the lawyer is a payer of value added tax (VAT), the lawyer is entitled to remuneration for the provision of legal services and also to the corresponding amount of taxes which are payable under the VAT law.

Remuneration of the advocate for the provision of legal services is governed by contract with the client (hereinafter referred to as "contractual remuneration"), and if the lawyer's fee is not contractually specified, shall be governed by the provisions of Decree no. 177/1996 Coll., On remuneration and compensation of advocates for providing legal services (ie. Lawyer’s fees). The lawyer is entitled to the payment of lawyer's fee for the provision of legal services and is also entitled to reimbursement of cash expenses and compensation for lost time.

Contractual fee is an agreement between the lawyer and client on the amount for which legal services are to be provided or on the way of its allocation. Agreement on contractual remuneration may be included in the contract under which legal services are provided or can be negotiated separately.

Lawyer's remuneration must be reasonable and must be clearly proportionate to the value and complexity of the case. In assessing the adequacy of the remuneration of the lawyer the following is considered: the bargaining skills and capabilities of the lawyer and the client; the extent of client’s information about the legal services market; the special knowledge, experience, reputation and skills of the lawyer; the nature and duration of the relationship between the lawyer and client when providing legal services; the client's time demands on the settlement of the case; the difficulty and novelty of factual and legal issues associated with the case and the fact that because of the acceptance of the client's case the lawyer must refuse to accept other work.

Establishment of a specific type and amount of contractual remuneration for the provision of legal services is always a matter of individual agreement between the lawyer and the client, among others; even when taking into account the above criteria.