The New Year Brings an Increase in Attorneys' Fees: What Does the Long-Awaited Amendment Bring?

News
Interesting Fact
Beáta Pultarová
Lukáš Šikel

The new year brings an increase in attorneys' fees, including for defense in criminal proceedings, legal representation in administrative proceedings, and for filing a constitutional complaint. There has also been a slight increase in the so-called administrative flat fee and compensation for lost time by an attorney. Some of the changes introduced by the amendment to the Attorney Fee Tariff are outlined in this brief article.

Adjustment of Tariff Values, Administrative Tariffs, and Compensation for Lost Time

The amendment introduces an adjustment to the tariff values for various legal actions (we previously wrote about how the remuneration for legal representation is calculated here), which means an increase in fees for legal services provided by attorneys. For administrative lawsuits or constitutional complaints, the tariff values have been significantly increased, reflecting the complexity of these actions and the higher costs involved. For example, for filing an administrative lawsuit or a cassation appeal, the successful party will now receive 5,620 CZK instead of the current 3,100 CZK, provided they win the case. For a constitutional complaint, the amount will be 6,220 CZK. Defense attorneys in criminal proceedings will also see similar increases.

The so-called administrative flat fee (i.e., a lump sum to cover expenses such as postage, which is added to each legal action) has increased from 300 CZK to 450 CZK per action, and compensation for lost time, for example, for attending a court hearing in another city, has increased from 100 CZK per half hour of lost time to 150 CZK.

Where the Change Does Not Apply

The attorney's fee for a legal service in civil proceedings is typically calculated based on the value of the dispute. For example, in a case regarding the payment of an overdue invoice for 100,000 CZK, the attorney would receive a fee of 5,100 CZK for one legal action in 2024. However, this calculation has not been increased by the amendment, even though inflation and rising costs in recent years have significantly affected the overall operational costs of legal practice.

This situation may work against clients, who, if they win the case, may not receive in the court-awarded litigation costs an amount that even comes close to what they paid the attorney for legal representation (we have written about the fact that the amount awarded by the court to the winning party for litigation costs may not cover the actual costs of legal representation here).

What Impact Will the Amendment Have on Clients?

Higher fees for attorneys may lead to a greater number of attorneys being willing to provide services ex officio, i.e., defending individuals under criminal investigation who lack sufficient financial means. The work of these attorneys is reimbursed by the state based on the attorney's tariff. With the increase in tariff fees, it is expected that the compensation will better cover the actual costs for clients for legal representation, which may motivate more people to approach the courts and defend their rights, with the exception of the aforementioned civil proceedings.