Performance-based remuneration

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A performance-based remuneration is a fee which is negotiated between the lawyer and the client. The lawyer receives remuneration if he achieves the desired success for the client.

Performance-orientated share of risks
Lower risk in case of failure
In case of success higher fees

Performance-based remuneration is attractive for the client. When the lawyer reaches the result, the client receives the remuneration. Performance-based remuneration is part of a fee agreement. A performance-based fee is only permitted in certain cases. A success fee may only be agreed for the individual case and only if, due to its economic circumstances, the client would be prevented from pursuing the law without an agreement on a success fee due to its economic circumstances. In the event of failure, it can be agreed in a judicial procedure that no or less than the statutory remuneration is payable if an appropriate surcharge on the statutory remuneration is agreed for the success.

The agreement must include the anticipated statutory remuneration and, where applicable, the non-performance-related contractual remuneration for which the lawyer would be prepared to take on the assignment and an indication of what remuneration should be earned when the conditions were met.

If a remuneration agreement at a court representation is void, the statutory remuneration applies. This is then based on the provisions of the Lawyers’ Fees Act (RVG).

If remuneration for the extrajudicial fee is unlawful, the lower remuneration for lawyers remains. In a ruling, the Federal Court of Justice ruled that only the lower, but illegal, remuneration is to be paid by the client.

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