November, 2020

What is "debt help"?

September, 2020

LegalTech2020 in Russia

Cost of office services

Each price offer is formed individually for the client, because the cost of legal support always depends on several factors:

  • complexity of the case,
  • remoteness of the service (court location in the region other than the location of the lawyers)
  • duration of project management
  • number of experts involved in the question.

Praktika Law Office is flexible in working with its clients and offers an opportunity to choose an optimal payment model based on the elaborated principles of pricing.

Pricing Principles

Principle #1 - hourly rate (billable hours)

It is often very difficult to determine the amount of time which is needed for the project implementation, that's why in our practice the proposal of hourly pay rate (billing) has been formed.

The cost of an hour starts at 7000 rubles/hour and usually depends on the profile of the case.

Within the proposed pricing the client can also choose the most suitable payment option:

  • advance with a certain set of hours + payment per hour beyond the set. Example: the firm's lawyers provide legal support of the company's business activities. The cost of support under the service contract includes 20 hours of lawyers' work at the rate of 7000 rubles per hour. If the client exceeds the limit of service provision, the next hour of lawyer's work for the client is paid at the rate of 8000 rubles/hour over the limit).
  • payment every month (or every 2 weeks) on the basis of the lawyer's report on the services rendered. Example: the lawyers of the Bureau render a transaction support service at the rate of 8000 rubles / hour. The client pays the lawyers for the work done on the project on the fact of sending a report on the services rendered once a month when agreeing on the report.

Principle #2 - a fixed fee (flat fee)

A flat fee is an amount predetermined for one case, a part of a case or several cases. It does not vary, depending on the time spent in the proceedings and the outcome of the case.

Practice of court projects developed by many years of work clearly demonstrates that the number of meetings may vary from 1 to 5 or more, and taking into account the hour delays while waiting for the process, a lawyer can spend all working day in the court building.

Because of this, it is simply not beneficial for the client to pay for another delayed session or many hours of delay, and it is more reasonable to make a fixed payment for supporting the entire litigation project.

In addition, the winning side of the case is entitled to legal expenses, which are reimbursed by the Practice's lawyers.

We remind that the final cost of the project is always determined individually, based on many factors.

Examples of rates for litigation support services:

  • arbitration court (1st instance) - from 250 thousand rubles
  • arbitration court (appeal / cassation proceedings) - from 75 thousand rubles
  • court of general jurisdiction (1st instance) - from 250 thousand rubles
  • court of general jurisdiction (appeal/appeal) - from 75 thousand rubles

Examples of rates for other services:

  • contract audit - from 10 thousand rubles
  • preparation of claims against the counterparty - from 15 thousand rubles
  • support for the case in court arbitration in summary proceedings - from 25 thousand rubles.

Principle #3 - success fee

We understand that under current economic realities the client does not expect from a lawyer to provide services, but to achieve a certain result in accordance with the intended goal.

Praktika Law Office is open to a success fee arrangement. In this case, a success fee is defined as a bonus in addition to the fixed part of the fee, which is directly dependent on the result of the work on the case.

As a variation of success fee, our firm has experience in cooperating on the terms of the so-called contingency fee, which is an agreed-upon percentage of compensation (awarded or saved) based on the outcome of a case or a fixed amount that also depends on the result.

Examples:

  • representation of interests in the FAS in Moscow in a case for inclusion in the RNP of a procurement participant. An advance payment in the amount of 75 thousand rubles and a success fee in case of successful resolution of the case in favor of the client another 75 thousand rubles is due under the contract. Obligatory payment in this case is only an advance payment and success fee is paid only upon occurrence of an event specified in the service contract.
  • support of litigation over recovery of accounts receivable from the counterparty. Under the contract shall be paid an advance of 250 thousand rubles and 5% of the recovered amount on the fact of receipt of funds to the client's account. That is, the mandatory payment in this case is only an advance payment, and the % of the recovered amount is paid only in case of receipt of funds to the client's account in proportion to the amount received.

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