Bruno Schoenaerts

Law offices

MOST FREQUENTLY USED COST-DECLARATION METHODS

The legal profession is a professional service, so there are various ways to declare costs. As already mentioned: the lawyer is free to make any agreement with their client (they are not obliged to apply the mentioned methods).
However, to help you understand what is involved, we are providing you an overview of the most frequent ways in Belgium.

  1. ON BASIS OF AN HOURLY RATE

    1. Hours × hourly rate

      This system is the most commonly used for professional services. A law firm can use either a fixed hourly rate, or variable hourly rates, according to your lawyer's speciality, or depending on their experience. The hourly rate can depend on certain factors such as the urgency of the matter, the expertise required, and the nature of the case and its interest.

    2. Hours × hourly rate, but with an hourly rate that depends on the client's resources

      In our profession, the hourly rate may depend also on the client’s financial resources. This method is not used for companies.

    3. Hours × hourly rate, but depending on the result

      The lawyer may agree with his client on two different rates: a low rate if the objective is not reached, a higher rate if it is obtained.

  2. A FIXED AMOUNT

    The client may agree with his lawyer beforehand, a total amount for the requested assistance.

  3. YEAR CONTRACT / FRAMEWORK AGREEMENT

    With this type of agreement, the client, (most often a corporate manager) makes a contract with the lawyer about the cost declaration methods in the cases to be treated. Here, the rates can be fixed and they may be based on the experience of earlier cases.
    Here too, specific considerations may be taken into account such as: urgency, specialist knowledge, or the importance and nature of the case.

  4. COLLECTION RATES

    When the lawyer simultaneously treats collection cases it is of common use to invoice a collection rate.
    The client makes an agreement with the lawyer on a fee structure that’s based on a percentage of the collected amount.

    For example:

    For the first bracket 2.500,- EUR 15%
    For more and up to 6.250,- EUR 10%
    For more and up to 25.000,- EUR 8%
    For more and up to 50.000,- EUR 5%
    For above 75.000,- EUR 3%

    For the Judicial recovery (debt collection by legal action) the sole pleading authority remains with the lawyer. In other words: no one can be obliged to pay to another person, except for a bailiff accompanied by federal police and exclusively on the grounds of a definitive court order obtained by a lawyer.

    Within the framework of the defence for his client, Law Offices Bruno Schoenaerts treats this Judicial recovery at a previously agreed rate, for example the collection rate.
    We endeavour to recover all costs from the opposite party (for example by applying payment terms).

  5. OTHER METHODS

    Other systems or a combination of the aforementioned are also possible, as long as they are not in conflict with any existing professional regulations and rules of conduct of the lawyer.

  6. ADVANCE - RETAINING FEE

    The lawyer may also ask you, when discussing the costs of the case, to transfer an advance payment to his corporate bank account.

continue…