Litigation costs: lawyer's salary

 

Litigation costs: lawyer's salary













When a judge pronounces a verdict, in the majority of cases the loser is ordered to pay the costs of the proceedings. The loser then has to pay the other's legal costs. The litigation costs consist of several items. This includes the costs of serving the summons, any attachment costs, the salary of the opposing party's lawyer and subsequent costs. In this blog I will discuss the salary of the lawyer.

Lawyer's Salary

In the Netherlands, except in intellectual property cases, the actually incurred attorney's fees are not charged to the losing party. The lawyer's salary is estimated according to the liquidation rate. The liquidation rate depends on the procedural acts performed and the importance of the case (the amount of the claim). The liquidation rate is a recommendation, but in practice all courts and tribunals follow this recommendation.

Example

This may sound rather abstract, so an example to clarify the calculation.

The claimant claims payment of an amount of € 75,000 from the court. In the proceedings, the winning plaintiff had a subpoena served and attended a hearing of the parties with his lawyer . The judge granted the plaintiff's claim and ordered the defendant to pay the costs of the proceedings.

The summons and attendance at the appearance both count as one point; so a total of two points. The importance of the case is € 75,000 and that includes a liquidation rate of € 1,074 per point. The losing defendant will therefore be ordered to pay € 2,148 in salary of the lawyer.

Not cost-effective

It is good to realize that in most cases the assigned salary of the lawyer does not cover the actual lawyer's fees. You should therefore see the order to pay the costs of the proceedings as a contribution to the attorney's fees.

Overview

A complete overview of the valuation of activities and the liquidation rates can be found on the website of the Judiciary .

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