The total fee for legal representation in a court case mainly depends on how much time the lawyer spends effectively defending your rights. As a general rule, the more complex the case, the more work the lawyer will have to do. However, such an investment can pay off, as an experienced lawyer may help turn the outcome of the lawsuit in your favor. But how much does a lawyer typically charge, and is it even possible to estimate how much legal representation will cost? This article briefly addresses these questions.
When Will I Know the Fee?
When you approach a lawyer for legal representation, the lawyer will inform you about the conditions of legal representation based on an initial assessment of the case. They should tell you how their fee will be calculated (usually an hourly rate), and how much time they will spend preparing at least the first step they will take on your behalf as your legal representative. Therefore, it is essential to agree on the terms with the lawyer, so there is room for negotiation regarding the method of compensation and possibly the amount of the fee.
Once the lawyer takes on the representation, they must keep you informed about what actions they will be taking on your behalf and to what extent. You should always have at least a rough idea of how much the lawyer’s services will cost.
For completeness, we note that the amount you pay the lawyer for their services will usually not match the legal costs the court may award you if you win the case.
Methods of Determining the Lawyer’s Fee
The lawyer’s fee can be determined using the following methods, either individually or in combination:
Hourly Rate
In most cases, lawyers charge for legal representation based on an "hourly rate." The hourly rate typically ranges from 2,000 CZK per hour of work excluding VAT (usually the lawyer adds a 21% VAT to the hourly rate). Higher rates may apply for specialized lawyers or lawyers from well-known law firms.
Flat Fee
In cases where the scope of work can be reasonably estimated in advance, lawyers may offer legal services for a "flat fee." In this arrangement, you agree on a fixed amount for legal representation throughout the entire case. For example, you might agree on a one-time fee for the entire first-instance court procedure, which remains unchanged regardless of how much time the lawyer actually spends on the case. This fee structure is typically used in cases like contract preparation or corporate law, where the time required is easier to predict.
In cases of recurring legal actions, such as debt collection for identical claims, lawyers may also offer legal services based on a monthly (or quarterly/annual) flat fee.
Success Fee (Contingency Fee)
Some clients may be interested in a success fee, which is commonly used in commercial disputes or complex cases where the outcome is uncertain. The lawyer receives a percentage of the amount they recover for the client in the dispute (usually awarded in court). The success fee generally ranges from 5% to 20%.
Per-Action Fee
Another method of determining the lawyer's fee is the "per-action fee," where the lawyer charges for each specific action they take, such as preparing a lawsuit or representing you in court. This form of compensation is regulated by the Ministry of Justice’s Decree No. 177/1996 Coll. on Lawyers' Fees and Expenses (the "Lawyer's Tariff"). In monetary disputes, the fee for each action depends on the value of the case. However, lawyers generally avoid using the Lawyer's Tariff to calculate fees, as the amounts listed in the tariff have not been updated for years and do not reflect the actual costs involved. It is possible to agree that the fee will be based on the tariff, but with adjusted rates.
Reimbursement of Expenses
In addition to the lawyer's fee, the client is also responsible for additional costs associated with providing legal services, such as court fees, travel expenses, or document procurement. These expenses should always be communicated and justified in advance.