Method of determining remuneration
Remuneration for legal services is charged pursuant to the agreement with client. Remuneration may be determined in the form of:
- an hourly rate (the rate is determined by the complexity of the case, expected time requirements, and by the language in which legal service is provided, or in which relevant documents are prepared);
- a fee per service (e.g. for Attorney's custody);
- a flat monthly fee (e.g. for the recovery of a portfolio of claims);
- a share of achieved performance (e.g. in specific court disputes);
or in a different form according to the specifics of the case.
Remuneration agreed on by both sides does not include:
- cash expenses such as court, administrative or notarial fee, travel reimbursement, costs of translations and expertise (cash expenses, if paid by the law firm, are charged to the client) or
- overhead expenses such as costs of printing, copying, telephone calls, the reimbursement for postage (these expenses are usually charged by flat fee in agreed rate)
Value Added Tax in a statutory amount (currently 21 %) is added to the remuneration for legal services.
Reimbursement of costs in court proceedings
The court usually grants the claim for costs of the proceedings to the participant who is successful in the dispute against the party who was unsuccessful. If the successful party is represented by an Attorney at Law, remuneration for representation by Attorney at Law in the amount stipulated by a special legal regulation is included in the reimbursement of costs in court proceedings.
Out-of-court settlement of consumer disputes
The Czech Bar Association is the competent entity for the out-of-court settlement of attorney-consumer disputes; more information can be found here.