What is a lawyer 1

Special case, contingency fee

The agreement of success fees is generally not permitted.

Section 49b (1) sentence 1 BRAO

Agreements by which a remuneration or its amount is made dependent on the outcome of the matter or the success of the legal activity or according to which the lawyer receives part of the amount won as a fee (success fee) are inadmissible, unless otherwise stipulated in the Lawyers' Fees Act.

The exception to this general prohibition is regulated in ยง 4 a RVG.

Section 4a (1) RVG

A contingency fee (Section 49b, Paragraph 2, Clause 1 of the BRAO) may only be agreed on a case-by-case basis and only if the client would be deterred from prosecution without agreeing a contingency fee due to its economic circumstances. In judicial proceedings, it may be agreed in the event of failure that no remuneration or less than the statutory remuneration is to be paid if an appropriate addition to the statutory remuneration is agreed in the event of success.

If these prerequisites are met, the agreement must contain the expected statutory remuneration and, if applicable, the non-performance-related contractual remuneration for which the lawyer would be willing to take on the assignment, as well as an indication of which remuneration should be earned when which conditions are met. The agreement must also state the main reasons for determining the success fee. Furthermore, a note must be included that the agreement has no influence on the court costs, administrative costs and the costs of other parties to be reimbursed by the client.