Who pays my lawyer if I win the case?
You do, because the lawyer works on your instructions and you owe them the fees you agreed, whether you win or lose, unless you agreed otherwise. If the judgment orders the other side to pay the costs, they must reimburse you for what you have paid your lawyer, your court agent (“procurador”) and your experts, but only up to the amount approved in the assessment of costs. That amount is capped and often does not cover everything you have paid. If the other side does not pay, their assets can be attached, although if they have nothing there will be nothing to recover the money from.
Alburquerque Abogados
You pay your own lawyer
Your relationship with your lawyer is a contract between the two of you. Their fees are freely agreed and are set when you instruct them. Since December 2024, the law has given you the right to have the lawyer explain beforehand what the case may cost you, including any costs you might have to pay. You can also ask for the engagement to be set out in writing, with an advance quote for the fees and expenses. It can be agreed that part of the fees will depend on the outcome.
A costs order does not change what you agreed with your lawyer. The costs belong to you and not to the lawyer. They serve to let you recover what you have paid, unless you have agreed that the lawyer keeps them as part of their fees. If you have insurance with legal expenses cover, for example your home insurance, the insurer may pay your lawyer within the limits of the policy.
How much you can recover
You only recover anything if the other side is ordered to pay the costs, which generally happens when the judge finds entirely in your favour and the case did not raise serious doubts of fact or law. If you win only in part, each side will normally pay its own. In addition, the law generally requires an attempt to reach an agreement before suing. If you refused without good cause to take part in that attempt, you may be left without your costs even if you win.
Even with a costs order, you may recover less than you have paid, for several reasons:
- What is recovered for the lawyer and the experts cannot exceed, in total, one third of the value of the case, unless the judge declares that the losing party acted with recklessness (“temeridad”). In a case worth 6.000 euros, for example, 2.000 euros at most.
- If a lawyer and a court agent were not compulsory, as in “juicio verbal” cases (the simplified procedure) of up to 2.000 euros, their fees are in principle excluded from the costs.
- Items that are not broken down and those for unnecessary pleadings are excluded. If the other side considers the fees excessive, they can challenge them and the court can reduce them.
You bear the difference between what you have paid your lawyer and what you recover.
How the costs are recovered
Once the judgment is final, the assessment of costs is applied for with the itemised bills of fees of your lawyer and your experts and your court agent's account. The court clerk (“letrado de la Administración de Justicia”), the official who runs the court office, draws up the calculation and the other side has ten days to challenge it. Once it is approved, if they do not pay, the amount is claimed in the same court and their assets can be attached, such as their bank accounts or the part of their salary that the law allows.
If the party ordered to pay has no income or assets, there will be nothing to recover from for as long as that remains the case, even though the judgment orders them to pay. Meanwhile, you owe your lawyer what was agreed, whether or not you recover the costs.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.