Alternative consumer dispute resolution

The Czech Bar Association (www.cak.cz) is the competent authority for alternative resolution of consumer disputes between an advocate and a client – consumer related to an agreement on provision of legal services, within the meaning of Act No. 634/1992 Coll., on consumer protection, as amended. Further more detailed information about the alternative resolution of consumer disputes, including the manner of commencement of such a dispute, is available on the above mentioned web page of the Czech Bar Association.

Remuneration for provision of legal services

Generally, an advocate is not allowed to provide the information about his/her remuneration (fees) for legal services to the general public.

Legal services are usually provided for remuneration and an advocate may request an adequate advance payment from a client. If the advocate is a VAT payer, s/he is entitled to charge the VAT in addition to the agreed remuneration, which s/he is obliged to pay in accordance with a special legal regulation.

The remuneration of an advocate for the provision of legal services is governed by an agreement between the advocate and a client (hereinafter as the contractual remuneration”), and if there is no such agreement, the remuneration of the advocate shall be governed by the provisions of Regulation No. 177/1996 Coll., on remuneration of advocates and compensations of advocates for the provision of legal services (the advocate‘s tariff), as amended. In addition to the remuneration for the provision of legal services the advocate is also entitled to a compensation of (cash) expenses and a compensation of lost time.

The contractual remuneration is an arrangement between the advocate and the client on a fee, for which the legal services will be provided, or on the manner of the determination of this fee. The arrangement on the contractual remuneration can be a part of an agreement, based on which the legal service is provided, or can be agreed separately.

The contractual remuneration of an advocate has to be adequate and must not be clearly disproportionate to the value and complexity of the matter. In assessing the adequacy of the contractual remuneration of an advocate, particularly the following shall also be taken into account – the negotiating skills and possibilities of the advocate and the client, the amount of information, which the client has about the legal services market conditions, the special knowledge, experience, reputation and abilities of the advocate, the nature and duration of the relationship between the advocate and the client when providing the legal services, the requirements of the client regarding the timing of the settling the matter, the complexity and novelty of the factual and legal issues connected with the matter and probability that as a result of accepting the representation in the matter, the advocate will have to turn down the representation in other matters.

The determination of particular type and amount of the contractual remuneration for the provision of legal services is thus always a matter of an individual agreement between the advocate and the client, inter alia taking into account the above mentioned criteria.