Legal processes are significant turning points in the lives of individuals and organizations. Obtaining professional legal support during these processes is crucial. Lawyers provide legal advice and representation to their clients and charge a fee for this service. Attorney fees are typically determined by a “lawyer fee agreement” between the parties. However, these agreements can sometimes lead to disputes between the parties and even lead to litigation. Especially in a dynamic and rapidly developing city like Antalya, the intensity of legal proceedings frequently leads to disputes arising from attorney fee agreements. This article will examine in detail the legal nature of attorney fee agreements, the causes of disputes arising from these agreements, and their possible solutions.
Legal Nature and Importance of Attorney Fee Agreement
A lawyer’s fee agreement, regulated by Article 163 of the Attorneyship Law, is a contract between a lawyer and a client that specifies the fee the lawyer will receive for legal services. This agreement is considered a special type of agency agreement under the Code of Obligations and is required to be in writing. Fee agreements not made in writing are considered invalid. This written requirement is intended both to safeguard the parties’ rights and to prevent potential disputes.
The importance of the contract lies in its ability to not only determine the amount of the fee but also clarify the scope of the work the lawyer will undertake, the nature of the service, who will cover the costs, and the terms of payment. A clear and transparent contract strengthens the trust between client and lawyer and significantly prevents future misunderstandings.
Types of Wage Agreements and Determination Methods
Within the framework of the Attorneyship Law and relevant legislation, attorney fee agreements can be drawn up in different ways:
* Fixed Fee: A type of contract where a fixed fee is agreed upon in advance for the entire legal service. It is generally preferred for a specific case, legal consulting service, or a single transaction.
* Proportional Fee: This fee is determined as a percentage of the benefit or amount earned as a result of a lawsuit or legal transaction. However, in such agreements, the limitation of Article 164 of the Attorneyship Law, which states that “the fee cannot exceed 25% of the case value,” and the principle that “the fee cannot be below the Attorneyship Minimum Fee Tariff,” must be taken into account. These limitations are intended to protect clients from excessive fee demands.
* Hourly Fee: This contract model provides a set fee for each hour the lawyer spends. It may be preferred, especially in complex and lengthy legal processes where a clear outcome cannot be foreseen at the outset.
* Mixed Models: Contracts that combine the above types are also possible. For example, in addition to a fixed fee, an additional proportional fee may be agreed upon if the case is won.
The Attorney Minimum Fee Tariff (AAÜT) is a tariff published annually by the Union of Turkish Bar Associations that determines the minimum fees that attorneys can receive. Attorney fee agreements cannot specify a fee below the AAÜT; otherwise, this portion of the agreement is invalid, and the attorney may charge fees in accordance with the AAÜT.
Main Causes of Disputes
Disputes arising from attorney fee agreements may arise for various reasons:
* Incomplete or Uncertain Contract: Situations such as the lack of a written contract, failure to clearly state the fee amount or calculation method, and leaving the scope of the service unclear, pave the way for disputes.
* Differences in Expectations Between the Client and the Lawyer: If the client has inaccurate or incomplete information about the outcome of the legal process or the work to be done by the lawyer, this may lead to disagreements about fees if expectations are not met.
* Problems in the Performance of Services (Unfair Dismissal): If a lawyer is unfairly dismissed by a client or withdraws from the attorney’s position, disputes may arise regarding how fees are calculated and paid. In the event of unfair dismissal, the lawyer may be entitled to the full amount of the attorney’s fees.
* Claims of Invalidity of the Contract: A claim by one of the parties that the contract contains excessive fees (gabion), does not comply with the form requirement, or was concluded through one of the circumstances of weakness of will (error, fraud, intimidation) may lead to a claim of invalidity of the contract.
* Case Outcome Different Than Expected: If a lawsuit or legal proceeding results in a client’s disadvantage or if the expected benefit is not achieved, the client may be unwilling to pay attorney fees. However, the lawyer’s duty is not to win the case, but to defend the client’s rights to the best of their ability.
* Parties Acting in Contravention of the Rules of Good Faith: Failure of both the lawyer and the client to comply with the rules of good faith and honesty within the contractual relationship may be the starting point of disputes.
Solutions to Disputes Arising from Attorney Fee Agreements
Disputes arising from attorney fee agreements in Antalya or anywhere else can be resolved through various legal means.
Litigation
The most common and definitive way to resolve disputes is to file a lawsuit. These cases are generally heard in the Civil Courts of First Instance. However, the jurisdiction of the court may vary depending on the parties and the nature of the dispute. For example, if a lawyer represents a client with an employee status, the Labor Courts may have jurisdiction.
* Lawyer’s Fee Claim Suit: If the lawyer cannot collect the agreed fee from his client or the fee he is entitled to according to the AAÜT, he can file this lawsuit.
* Negative Declaration Suit of the Client: If the client claims that he does not owe the lawyer any debt or that he owes less, he can file a negative declaratory suit to determine that he is not indebted.
* Action for Cancellation/Validity of the Contract: If one of the parties claims that the contract is illegal or immoral, contains excessive fees (gabin) or is invalid due to a disability of will, the party may file a lawsuit to determine the cancellation or invalidity of the contract.
In the litigation process, evidence such as contract provisions, correspondence between the parties, payment records, witness statements and expert examinations are of great importance.
Mediation
Mediation is an alternative dispute resolution method in which the parties meet with a mediator to attempt to resolve the dispute through mutual negotiations. While there is no mandatory mediation requirement for disputes arising from attorney fee agreements, voluntary mediation is always available. Mediation can offer a faster, less costly, and more effective resolution than litigation. Antalya boasts numerous experienced mediators, and this approach can be an effective solution if the parties reach an agreement.
Enforcement Proceedings
If a document exists that could be subject to enforcement proceedings, such as an attorney fee agreement or court order, the creditor can initiate enforcement proceedings. Enforcement proceedings can be with a court order (based on a court order) or without a court order (based on no document and pending appeal). However, if the client objects, the enforcement proceedings are suspended, and the creditor’s attorney must file a lawsuit to annul or set aside the objection.
Unfair Dismissal and Fee Claims
One of the most important topics in attorney fee agreements is the concept of “dismissal.” A client may dismiss (remove) their attorney at any time and without cause. However, whether the dismissal is justified directly impacts the attorney’s fee.
* Unfair Dismissal: If a client dismisses a lawyer despite the lawyer’s full and diligent performance of his duties, this is considered an “unfair dismissal.” In the event of an unfair dismissal, the lawyer is entitled to the full agreed-upon fee for the entirety of the work undertaken. Even for work not yet completed, the lawyer must be paid the full fee for that work. Supreme Court precedents also support this principle.
* Justified Dismissal: A client may dismiss a lawyer for just cause in cases where the lawyer neglects his or her duty, breaches the duty of loyalty to the client, or abuses his or her attorney’s position. In the case of justified dismissal, the lawyer may only demand fees for work performed up to the date of dismissal, and these fees are generally determined in accordance with the AAÜT.
Because a wrongful dismissal claim significantly impacts the course of a lawsuit, which will determine the attorney’s fees, it is critical that it be proven accurately.
Given the intensity and diversity of legal proceedings in Antalya, disputes arising from attorney fee agreements are inevitable. In such disputes, it is crucial that contracts be drafted in a detailed and transparent manner from the outset to protect the rights of both attorneys and clients. In the event of a dispute, due to the complexity of legal processes, seeking support from an expert legal professional is a critical step in preventing loss of rights and finding the most appropriate resolution. Because each dispute presents unique circumstances, seeking tailored legal counsel and representation, rather than relying on generic solutions, is the most effective approach for the parties.