In State Gazette No. 14 of 18.02.2025, an Ordinance amending and supplementing Ordinance No. 1 of 2004 on the minimum remunerations of attorneys (the “Ordinance”) was published. The amendments to the Ordinance are dictated by the Decision of 25.01.2024 in case C-438/2022 of the CJEU, according to which there may be no restriction on the negotiation between a lawyer and a client of remuneration in an amount not lower than the amount determined by an ordinance adopted by a professional organization of lawyers (which, according to the CJEU, is the Supreme Bar Council).
The specific amendments to the Ordinance are as follows:
- The concept of a minimum amount of lawyers’ remuneration is abolished Accordingly, the title of the Ordinance is changed to Ordinance on Determining Remuneration for Lawyers’ Work. This aligns with Article 36, paragraph 2 of the Bar Act (BA), which refers to remuneration issued by the Supreme Bar Council as remuneration “for the respective type of work.”
- Lawyers’ fees shall be freely determined by a written contract between the lawyer and the client (Art. 1 of the Ordinance). As a result, the basis for seeking disciplinary liability under Art. 132, item 5 of the BA is removed, as there is no longer a minimum threshold for compliance.
- The Ordinance applies where no contract exists between a lawyer and a client, whether remuneration is determined by the Bar Council (Art. 36, para. 2 of the BA) or by the court (Art. 38, para. 1 of the BA). The criteria set in the Ordinance allow its application as a guideline for regulating lawyer-client relations, as Art. 36, para. 2 of the BA refers to the Ordinance.
- The Ordinance is brought in line with Art. 101 TFEU, as interpreted in the CJEU Judgment in case C-438/2022.
- All minimums provided for in the Ordinance shall be deleted, regardless of the manner in which they are formulated and the type of lawyer’s work for which remuneration may be determined in the absence of a contract.
- The additional provisions of the Ordinance introduce legal definitions of the concepts of “interest” and “factual complexity”, which are relevant in determining the remuneration for lawyer’s work. The concepts follow the criteria established in the legislation, case law and custom, and by analogy definitions from the Civil Procedure Code, the Law on Notaries and Notarial Activities, respectively the Rules of the Supreme Judicial Council for assessing the workload of judges are used – regarding the factual and legal complexity.
- According to the Ordinance, “interest” in monetary receivables is the nominal value of the receivable, and in the case of periodic payments – the total amount of payments for the entire term.
- The assessment of “factual and legal complexity” takes into account the type and volume of the documents to be examined and the applicable legal framework; communication with customers, etc.
- The amendments eliminate the ethical obligation for lawyers to refrain from negotiating remuneration below the amounts specified in the Ordinance.
The fees offered by Nikolov & Partners Law Firm align with our clients’ preferences for predictability and transparency. Our lawyers’ fees are primarily determined as a fixed amount, calculated in accordance with the principles of the Ordinance and the BA. In exceptional cases, Nikolov & Partners Law Firm also offers clients hourly-based fees, which are determined based on the experience and qualifications of the respective lawyer or associate.