Questioning lawyer’s fees in Spain

LAST UPDATED: 11 Jan, 2015 @ 21:48
0
SHARE
Questioning lawyer’s fees in Spain

REFORMS have been brought in that require claimants to pay court filing fees when ‘making use of the public service of the administration of justice’.

This enactment has forced lawyers, already under severe stress due to the still-struggling economy, to downsize what they can legitimately request in fees.

In fact, even to the point of having to waive the retainer to allow a case – or an appeal – to go forward on a no-win-no-fee basis.

But what happens when one loses a case? And if no agreement was struck with the lawyer?

These notes should help understand the legal fees’ system:

a) The Spanish Solicitors’ Code of Practice establishes an absolute freedom to fix legal fees, pursuant to a Supreme Court ruling that nullified the prohibition of conditional fees.
b) Where no agreement is struck, clients need to be aware that by default they will fall under the legal fee guidelines approved by the provincial Bar Association, and these can be pretty hefty (a case worth €300k will attract €25k in fees, only in the first instance).
c) Equally, where a case is lost and the court awards costs i.e. pay the other party’s legal fees, they will too be calculated by reference to the respective Bar Association, in any case.
d) If scenarios b) and c) happen to coincide, an unsuspecting claimant could find that a case relating to a property worth say €300k could actually cost him €50k!
e) On property conveyancing, 1% of the purchase price is still pretty standard, in spite of the crisis. The reason for this is perhaps to do with the hefty quantum of a potential claim i.e. up to the value of the property and, notably, the very lengthy mandatory 15-year liability term to validly bringing a claim against a conveyancing lawyer.

The above conclusions make it very advisable prior to filing a case, and even responding to a claim filed against one, to ask the acting lawyer for an appraisal of the likely legal costs should the case be lost as, very often, these are ignored ab initio.
And naturally, have one’s own fees agreed and ratified by signing a letter of engagement or letter of instruction.

SHARE
Previous articleHundreds of palm trees destroyed in Almunecar due to killer weevils
Next articleCanary Islands to vote on Repsol drilling
Lawyer Antonio Flores is the legal columnist for the Olive Press. Antonio has been practising law since 1997, year in which he began working for a large law firm in Marbella as a Property Lawyer. In 1998 he left the company he had joined a few months earlier, and used his knowledge and the experience gained to build his own practice. He is known throughout the community as independent, reputable and trustworthy. Through a combination of strong work ethics, determination and international exposure, his competence of Spanish Law is unparalleled and demonstrated through his fluency in English and Spanish.

BE THE FIRST TO COMMENT...

The Olive Press are not responsible and do not moderate individual comments before they are posted. Anyone who uses racist, sexist, homophobic or xenophobic language or hate speech will be blocked.

HAVE YOUR SAY...