‍The court most often invites the parties to quantify the costs of the proceedings before the (final) decision on the merits.

In the case of representation by an attorney, the compensation of costs is governed by Decree No. 177/1996 Coll., on the remuneration of attorneys and attorneys’ fees for the provision of legal services (the Advocates' Tariff) (hereinafter referred to as the "AT").

The calculation of this fee for civil proceedings has several successive steps.

Reimbursement of legal costs

1. The first thing to establish is the so-called tariff value (see the provisions of § 8 AT). Typically, this is the amount of the monetary benefit (at the time of the commencement of the act, typically the commencement of the litigation). Section 9 AT then sets out tariff values for cases where the value of the thing or right cannot be expressed in monetary terms or otherwise ascertained.

2. The second step is the determination of the so-called non-contractual remuneration rate, which is based on the tariff value (per act). The non-contractual remuneration rates are set out in § 7 AT.

3. The third step is to determine the number of acts performed by the attorney in the proceedings. These acts are typically those described in the provisions of § 11 AT. However, this is not an exhaustive list and it is therefore possible to claim fees for similar acts.

4. In addition, the attorney at law is entitled to a lump sum compensation in connection with each act of legal services (including domestic postage, local call charges and transport costs) pursuant to the provisions of Section 13(4) of the AT. The flat-rate compensation is CZK 300 per act, unless the attorney and the client agree otherwise.

5. If the attorney is a VAT payer, VAT shall also be added to the resulting amount. If the attorney applies VAT, he/she must submit a taxpayer's registration certificate to the court.

Reimbursement of out-of-pocket expenses, including travel expenses

The attorney at law is also entitled to reimbursement of so-called "out-of-pocket expenses" within the meaning of Section 13 AT. These include in particular court fees paid, expert reports, expert statements, etc.

According to Article 13(5) of the AT, the reimbursement of travel expenses is also included among the expenses incurred. Reimbursement of travel expenses is governed by the relevant provisions of the Labor Code[1] (to which the AT refers) and the related Decree of the Ministry of Labor and Social Affairs[2]. This Decree, and therefore the reimbursement rates, are updated on 1 January each year.

Compensation for missed time

In addition to the above, the attorney is also entitled to compensation for the time missed. Compensation for missed time is specified in Section 14 AT.

It can be claimed, inter alia, for time spent travelling if the act is not performed at the lawyer's place of residence or registered office (typically travelling to and from the court hearing) and for time missed due to a delay in the start of the hearing before the court (or other authority) if it is longer than 30 minutes.

However, compensation is also payable in other cases specified in the AT (the hearing was adjourned without hearing the case, the hearing was not held without the lawyer being notified, etc. - see § 14(2) AT).

The rates for the various "types" of missed time are also specified in the provisions of § 14 AT.

Example of cost recovery calculation

A lawyer represents a client in a dispute for the payment of a sum of CZK 10,000. He first took over the representation of the client in the case and subsequently sent a pre-action notice to the opposing party. This went unanswered and the lawyer then brought an action before the court having local and subject matter jurisdiction. At the court's invitation, he drafted a statement of case on behalf of the client and subsequently attended the court hearing, where he travelled in his own vehicle. The lawyer is not liable for VAT and can now claim the following costs.

1. for legal services:

The fee for one act of legal service was set at CZK 1,500 according to the calculation outlined above (see § 7 AZ in conjunction with § 8(1) AT).

The lawyer took the following actions:

1. Acceptance and preparation of representation, classification: according to § 11 AT (1) (a), number of acts: 1

2.   Simple request for performance, classification: pursuant to § 11 AT(2)(h), number of acts: 0.5

3.   Filing of an action, classification: according to § 11 AT(1)(d), number of acts: 1

4.   Statement of defense at the request of the court, classification: pursuant to Article 11 AT(1)(d), number of acts: 1

5. Attendance at the hearing, classification: pursuant to Article 11 AT(1)(g), number of acts: 1

Total number of acts: 4,5

The lawyer is therefore entitled to costs in the amount of CZK 6,750 (CZK 1,500 x 4.5).

He may also claim a lump sum of CZK 1,500 (CZK 300 x 5) for each act of legal service[3].

He can therefore claim a total of CZK 8,250 as compensation for legal services.

2.     For expenses:

The lawyer travelled to the court hearing in his personal vehicle for a total distance of 100 km. The lawyer must also provide the court with the vehicle's technical certificate, which shows the vehicle's consumption. The travel allowances are calculated in accordance with Article 157 et seq. of the Labor Code and the relevant decree for the year in question.

Used vehicle: Skoda Octavia SLX

Combined consumption per 100 km according to the registration number: 8.4 liters

Vehicle depreciation rate per km: CZK 5.60

Average fuel price in the calendar year: CZK 38.20

Fare amount: 881 CZK

He can therefore claim a total of CZK 881 (vehicle depreciation of 100 (km) x CZK 5.60 and fuel consumption of 8.4 (liters) x CZK 38.20) as reimbursement of travel costs.

The lawyer also paid a court fee of CZK 1,000 on behalf of the client. The amount of the court fee is based on the amount sued and is set out in the schedule of court fees.

He can therefore claim a total of CZK 1,881 as reimbursement for his expenses.

3.     For the time missed

The lawyer is also entitled to claim compensation for time spent travelling (see above travel to and from the court), namely CZK 100 for each half hour within the meaning of Article 14(1)(a) and (3) AT. The journey took the lawyer 2 hours.

He can therefore claim a total of CZK 400 (4 x CZK 100) as compensation for the time he missed.

The total amount of costs in the sample case described above is therefore CZK 10,531, consisting of:

1. CZK 8,250 as compensation for legal services;

2. CZK 1,881 for reimbursement of out-of-pocket expenses;

3. CZK 400 as compensation for time lost.

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[1] Act No. 262/2006 Coll., the Labor Code, as amended, the provisions of § 157 et seq.

[2] Decree No. 398/2023 Coll., amending the rate of basic compensation for the use of road motor vehicles and meal allowances and fixing the average price of fuel for the purpose of providing travel allowances for 2024.

[3] For the purpose of calculating the flat-rate compensation, the acts referred to in Section 11(2) (which are otherwise referred to as "half acts" and for which a remuneration

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