On 11.09.2024 the National Assembly has adopted important changes in the Lawyers Act and the Code of Civil Procedure.
New national Ordinance on the determination of attorneys’ fees.
Since the EU Court of Justice, by its decision of 25th of January 2024, proclaimed Ordinance No. 1 of 9th of July 2004 on the minimum amounts of attorneys’ fees non-binding for the courts in the Republic of Bulgaria due to its issuance by the Supreme Bar Council, representing a professional organization of attorneys, and not a state body, the amendments to the law provide a new ordinance to be issued by the Minister of Justice. This must happen within 6 months from the moment the new texts come into force.
New rules regarding claims of excessiveness of the opposing party’s attorney’s fees.
Under the new texts, the “excessiveness” of attorneys’ fees will now be assessed not only on the basis of “the actual legal and factual complexity of the case”, as was the current wording of the law, but also on the basis of “the interest involved, the conditions under which legal assistance and defense was commissioned and provided, the time for its performance and its urgency, the qualifications, experience and specialization of the attorney”.
Another significant change is that excessiveness can only be claimed where the objected fee is at least 1/3 higher than the fee of the attorney of the party making the excessiveness objection.
In considering an objection to excessiveness, judges will be prohibited from awarding less than the amount of the attorney’s fees paid to the party claiming excessiveness.
Advertisement of attorneys.
Another significant change in the law will now officially allow attorneys to advertise their practice.
What will be allowed when advertising?
– the advertisement could contain information that individualizes the attorney;
– the advertisement could contain information that fairly and objectively represents the attorney’s practice;
– the advertisement must comply with the principles of confidentiality, integrity and preservation of the dignity of the legal profession;
– the advertisement may contain comparisons with other attorneys/law firms as long as the latter are objective and do not violate the principles of confidentiality, integrity and preservation of the dignity of the legal profession.
What will be prohibited when advertising?
– the advertisement must not contain the names of clients (regardless of their consent);
– the advertisement must not contain false or misleading information, including about the amount of the attorney’s fee or the provision of free legal aid and assistance;
– the advertisement must not rise unjustified expectations of achieving a result which is not wholly dependent on the attorney’s professional activity;
– the advertisement must not be directed at persons or relatives of persons who are victims or are otherwise in a position of inability to determine and freely choose their attorney.
Intermediary in the performance of legal activities.
The new texts provide for the possibility of using an intermediary in order to find clients for the attorney in return for a corresponding separate remuneration for the intermediary.
The new texts are to be promulgated in the State Gazette, after which they will enter into force and will start to be applied in practice.