What percentage does a lawyer charge for winning a case?

Question

José Manuel Alburquerque · Accepted Answer

There is no percentage set by law and no official one. Fees are freely agreed between the lawyer and the client. This makes it possible to agree that the lawyer will receive a share of whatever is obtained, known as a contingency fee (“cuota litis”), either on its own or together with a fixed amount. The percentage depends on the risk of the case, the work it requires and how difficult it will be to collect payment afterwards. It is advisable to put in writing what it is calculated on, when it is paid and what happens with VAT, expenses and costs. It can be agreed The “Estatuto General de la Abogacía”, the general statute of the legal profession, leaves the amount of fees to whatever the client and the lawyer freely agree. That includes making part or all of them depend on the outcome. The two most common formulas are these: Only a percentage of whatever is obtained. If nothing is obtained, the lawyer charges no fees. Even so, the client may have to pay the expenses of the case, such as the court agent (“procurador”) or the experts. If the client loses, he or she may also be ordered to pay the other side's costs, which are mainly what that side pays its own lawyer and court agent. A fixed amount for the work plus a percentage or an additional amount if the case is won. No rule says which percentage is the right one. A high-risk case or a debtor from whom it will be difficult to collect usually leads to a higher percentage being proposed. That is why it is advisable to compare more than one proposal and to work out how much each would amount to under several possible outcomes. What to put in writing An arrangement of this kind leads to disputes if it is not clear. The letter of engagement should specify: What the percentage is calculated on. What is claimed is not the same as what the judgment awards or what is actually collected. When it is paid, whether when the judgment is given or as the money is collected. Whether the percentage includes VAT or VAT is added on top. Who pays the expenses of the case and whether they are deducted before the percentage is calculated. Who keeps the costs paid by the other side if you win. What is charged if an agreement is reached, if you withdraw the claim or if you change lawyer before the case is over. The limits If you hire the lawyer as a consumer, the arrangement must be drafted clearly and comprehensibly. In addition, it cannot be unfair. The Court of Justice of the European Union has held that lawyers' contracts with their consumer clients are subject to the rules on unfair terms. If the lawyer sues a private individual in court for his or her fees, the lawyer must provide the contract. The judge then examines on his or her own initiative whether any clause is unfair. On the other hand, the cap the law places on what a party ordered to pay costs must pay for the other side's lawyer does not limit what you agree with your own lawyer. That cap only affects what can be recovered from the opposing party.