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Principles of Cooperation

Our cooperation with clients is based on legal service agreements. We distinguish two types of actions:

  1. Permanent legal service, which usually applies to the whole or a part of a company’s activities;
  2. Legal and project service, which aims at achieving a goal set by the client.

To assist our clients to make a decision on the manner of remuneration, we have created three service fee models:

 

Model 1: payment based on service duration

Taking into account clients whose demand for legal consultancy changes, we have created the first settlement model. This is a model that is most often used in the case of permanent legal service where it is difficult to estimate service duration.

Taking into account clients whose demand for legal consultancy changes, we have created the first settlement model. This is a model that is most often used in the case of permanent legal service where it is difficult to estimate service duration.

We calculate a service fee as the product of a fixed hour rate and service time. The service fee is usually payable on a monthly basis on the basis of an invoice supplemented with the detailed list of services provided, including:

  • Performance date
  • Service description
  • Service time in minutes
  • Full name of a lawyer that performed a given service

The hour rate may be negotiated depending on the complexity and volume of services provided. We also offer two solutions of a variable rate.

In the first solution, the client orders a defined number of hours in advance and buys a kind of subscription. The rate of hours subject to subscription is smaller than a rate payable by the client after services provided thereto exceed the number of hours ordered.

The second solution is offered if the number of our Law Firm’s working hours may be subject to significant fluctuations depending on changing client’s needs. Then, we suggest that an hourly rate is reduced until our working hours exceeds the defined number of hours, which results in that the more services the client orders, the lower the fee.

Model 2: Lump-sum payment

For clients that want to plan their legal service costs more precisely, we have prepared the second variant. We use this method if we are able to define the work-consumption of legal services. Then, we specify the exact remuneration for our work.

For clients that want to plan their legal service costs more precisely, we have prepared the second variant. We use this method if we are able to define the work-consumption of legal services. Then, we specify the exact remuneration for our work.

In the case of a permanent legal service, we set out a monthly fixed lump-sum fee in our agreements. Such a fee does not change whether the number of hours worked out in a given month is larger or lesser than we presumed.

In the case of a project legal service, the agreement provides for the total service fee, which may be changed only in the form of an annex to be agreed with the client. In addition, if legal services are provided in relation to a long-term project (e.g. a several-year investment project), the agreement divides the project into stages and a service fee is payable partially after the end of each stage.

In the case of lump-sum payments, we offer an additional attractive solution to our clients. The client pays our Law Firm an hourly rate, but our Law Firm undertakes that the total value of services will not exceed the defined amount. This solution combines advantages of payments based on an hourly rate, where the client pays only for services actually performed by a lawyer, with a guarantee that the total amount payable to our Law Firm will not exceed the budgeted amount.

Model 3: payment based on a success fee

This model is applied only in the case of legal project service. It has been created for Clients that want to strictly define their goal (success) to be achieved. Goals are divided into two groups:

  1. A goal consisting in the achievement of specific measurable positive outcome, e.g.: the acquisition of another company, the successful negotiation of a profitable contract, the purchase of shares or stocks, the purchase of a fixed property, the execution of a settlement contract with creditors, winning the bid, the collection of debts.
  2. A goal consisting in the avoidance of a specific and measurable adverse outcome, e.g.: the successful protection of directors against civil and criminal liability, blocking an attempt of hostile acquisition by another company; the avoidance of compensation payment to a business partner, questioning an unfavourable decision of tax authorities; defence against debt collection; the rejection of creditor’s bankruptcy petition.

Our fee is calculated in two parts.

The first part usually results from the product of an hour rate reduced by approximately 50% and legal service duration. In extreme cases where such a model is applied, this part of the fee is minimum or token. If it is possible to define the approximate work-consumption of our services, this part of the fee may be also defined as a lump sum.

The second part depends on a measurable effect and the agreed percentage ratio which reflects our share in the Client’s outcome (success). If no success is achieved, the Client does not pay this part of the fee.

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