Lawyers’ Compensation Act (RVG)

The German Lawyers’ Fees Act (Rechtsanwaltsvergütungsgesetz, RVG) is a central element of the German legal system. It regulates the remuneration of attorneys for their services. In this comprehensive article, we will look at the RVG, explain its structure and key provisions, and show how it is applied in practice.

Introduction to the RVG

The RVG came into force in 2004 and replaced the Federal Lawyers’ Fees Act (BRAGO), which had been in force until then. The RVG sets out the fees that lawyers may charge for their work. It serves to protect the interests of both lawyers and clients by providing transparency and reliability in the billing of legal services.

Structure of the RVG

The RVG consists of several parts:

1. General provisions: This part contains basic regulations on the application of the law.
2. Subject-matter values and fees: The various types of fees and the calculation of the subject values are regulated here.
3. Fee elements for activities before courts: This section contains regulations on fees for court activities.
4. Fee elements for advice and out-of-court representation: The fees for advice and out-of-court activities are regulated here.
5. Determination of costs, reimbursement and advance payment: This part regulates the determination of costs and their reimbursement.
6. Transitional and final provisions: This section contains regulations for the transition from BRAGO to RVG.

Important provisions of the RVG

Fee types

The RVG distinguishes between different types of fees, including the procedural fee, the appointment fee, the settlement fee and the business fee.

Countervalue

The value in dispute is a central concept in the RVG. It forms the basis for the calculation of the attorney’s fees and is usually determined by the client’s interest in the matter.

Compensation agreement

In addition to the statutory fees, the attorney and client may also enter into an individual fee agreement. This must be in writing and meet certain requirements.

Reimbursement

In certain cases, especially when a lawsuit is won, a client may seek reimbursement of attorney’s fees from the other side.

Application of the RVG in practice

In practice, the RVG is of central importance for the billing of legal services. Lawyers must adhere closely to the requirements of the RVG in order to bill their fees correctly. Clients should also familiarize themselves with the RVG to understand how the cost of legal services is arrived at.

Example of the application of the RVG

Let’s assume a client hires a lawyer to enforce a claim in the amount of 10,000 euros. The value in dispute in this case is 10,000 euros. The lawyer files a lawsuit and a court hearing is held in which the parties reach an agreement. The attorney can now charge various fees according to the RVG, including the procedural fee, the appointment fee and the settlement fee.

Criticism and discussion

The RVG is not without controversy. Critics complain, among other things, that the fees are set too high in some cases and that the RVG is too complex and difficult for laypersons to understand. There are also discussions about the extent to which the RVG should be reformed in order to adapt it to current developments.

Conclusion

The German Lawyers’ Fees Act (Rechtsanwaltsvergütungsgesetz) is a complex set of rules that is of central importance for the billing of legal services in Germany. Both attorneys and clients should familiarize themselves with the basic features of the RVG. If there are any uncertainties or special questions, it is advisable to seek expert advice.