Legal fees: How much does an initial consultation with a lawyer cost?

Whether it's a divorce or a car accident - there are numerous situations that require legal advice. Many people are under the misconception that "the first consultation with a lawyer is always free". This is not true, because a lawyer actually provides a service during an initial consultation that must be paid for by law. But how much does an initial consultation cost? What services can a lawyer charge for and who has to pay for them in the event of a lawsuit?

A lawyer may charge for these services

A lawyer can claim two types of costs for his work:

• Court costs
• Extrajudicial costs

A lawyer must comply with the statutory minimum and maximum limits. These are defined in the Law on the Remuneration of Lawyers (RVG for short) and in the Federal Lawyers' Act (BRAO for short).

Legal costs

• Procedural fee: If you are represented by a lawyer in court, a procedural fee is charged. This is the case, for example, if you file a lawsuit or communicate with a court orally or in writing.
• Appointment fee: If a lawyer attends a court-appointed appointment or an appointment with an expert on your behalf, they will charge an appointment fee.
• Settlement fee: If your lawyer reaches a settlement with the other party in the course of an ongoing lawsuit before a judgment is pronounced, they may charge a settlement fee. However, the fee is only charged if a dispute or uncertainty about a legal relationship is actually resolved.

Out-of-court legal fees

• Initial consultation: In an initial consultation, a lawyer will provide you with information or advice. You may be charged for this initial consultation.
• Consultation fee: Your lawyer will charge a consultation fee for further consultations. However, this may only be charged if new content and issues were dealt with during the consultation.
• Business fee: A business fee is payable for business transactions - for example, for the preparation of documents or the processing of correspondence. The amount varies depending on the scope and difficulty of the case.
• Settlement fee: If your lawyer reaches an out-of-court settlement between you and the other party, they may charge you a settlement fee.

Reimbursement of the lawyer's expenses

A lawyer may also charge his client for his expenses. This applies, for example, to

• Copies
• Official information fees
• Postage costs
• Travel costs to court hearings

Calculation of legal fees

In Germany, there are three remuneration models according to which a lawyer can charge for his work. He is free to choose between these models. In principle, the RVG applies to the calculation of legal fees. If the RVG does not provide for a specific fee, an individual fee agreement is possible.

Calculation according to RVG

When billing in accordance with the RVG, a case is assigned a judicial value in dispute or object value. This is the basis for calculating the lawyer's fee.

The RVG provides for a basic fee - the so-called value fee - for each amount in dispute. This is multiplied by a fixed factor. The amount of the factor depends on the type and difficulty of the lawyer's work.

An example: Mr. Müller runs an online store. Ms. Meier orders goods worth EUR 10,000 but does not pay for them. Mr. Müller would like to claim the purchase price with the help of a default summons. The RVG stipulates a basic fee of EUR 614 for an object value of EUR 10,000. This is multiplied by the simple fee rate (1.0). The total costs are therefore EUR 614 (basic fee) + EUR 116.66 (VAT) + EUR 20 (lump sum for expenses) = EUR 750.66.

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Areas of law

The Recht 24/7 frequently requested areas of law in Recht 24/7 online legal advice service are: labor law, tenancy and residential property law, and contract law.

Fee agreement

Pursuant to Section 34 (1) RVG, the lawyer and client may charge for:

• oral or written advice
• the preparation of a written expert opinion
• the activity as a mediator

conclude a fee agreement. Statutory maximum amounts prevent you from receiving a high lawyer's bill when your matter is examined. The maximum amounts are 190 euros for the first consultation and 250 euros for a legal opinion and further consultations.

Remuneration agreement

If you would like to pay less or if your lawyer demands more money than prescribed by the RVG, you must conclude an individual remuneration agreement. This is usually concluded if billing according to the RVG would be too low or too high for the scope of the lawyer's work or its degree of difficulty. Important: In the case of legal representation, only a higher remuneration agreement is permissible.

How much does an initial consultation with a lawyer cost?

Until 2006, the legal fees for an initial consultation were based on the value of the matter or amount in dispute. As a result, the consultation bill could reach a high four-digit figure.

Since 01.07.2006, the costs for an initial consultation have been capped at 190 euros plus VAT. But beware: this regulation only applies to private individuals, but not to self-employed persons and entrepreneurs. Depending on the case, they may have to pay a higher fee for the initial consultation.

If you cannot afford the fee for the initial consultation, you are entitled to legal aid. You can apply for this at the relevant local court. If you can prove that you are in need, you only pay the personal contribution of 15 euros, the remaining costs are covered by the state.

By the way: The Federal Court of Justice has ruled that lawyers may even offer an initial consultation free of charge (BGH ruling of July 3, 2017, Ref.: AnwZ (Brfg) 42/16).

Initial consultation and court proceedings: who pays the lawyer's fees?

As a general rule, if you seek legal advice or representation, you must pay the lawyer's fees yourself.

However, as a party to civil proceedings, you can claim the costs back from the other party - provided you win the case. Important: Reimbursement is limited to the legal fees at the statutory rate (RVG). You are responsible for any higher costs - such as those arising from a remuneration agreement.

If you are convicted in criminal proceedings, you must pay the lawyer's fees in full yourself. The state will only pay these if you are acquitted.

The most important facts in brief

• A lawyer can charge for advice as well as legal representation and expenses.
• The amount of the lawyer's fees is based on the RVG. Individual agreements between client and lawyer are possible.
• The fee for an initial consultation with a lawyer may not exceed EUR 190 plus VAT. An initial consultation free of charge has been permitted since 2006. Of course, you have to be careful here because, as we all know, only death is free! A free initial consultation is therefore almost never a "consultation", but a lawyer tries to acquire the client.... Such offers are therefore usually rather dubious.
• You must always pay your own legal fees. Only as the winner of civil proceedings can you claim these back from the other party.
• If you cannot afford a lawyer, you are entitled to legal aid if you can provide appropriate proof.