Fixed fee
The fixed fee refers to a flat-rate charge in fee law, particularly in the area of German attorney compensation law, notarial law, and other legally regulated fee systems. It is characterized by a set amount that is charged regardless of effort, duration, or value in dispute. Fixed fees serve to standardize and make costs predictable in legal transactions and are applied in various areas of law with regulated fee facts.
Meaning and Function of the Fixed Fee
The fixed fee is a central tool for managing costs in administrative, court, and notarial proceedings. It significantly contributes to the predictability and transparency of fees in proceedings. Unlike time-based or value-based fees, the fixed fee is levied independently of individual factors, which offers advantages in terms of calculability and administrative effort for both the parties involved and the billing entity.
Legal Basis of the Fixed Fee
Law on the Remuneration of Lawyers (RVG)
The Law on the Remuneration of Lawyers (RVG) provides for the collection of a fixed fee in certain cases. For example, Appendix 1 (Remuneration Schedule, abbreviated VV RVG) specifies for which activities carried out by lawyers fixed fees are to be charged. One example is legal aid, where a uniform fee is charged, regardless of the extent of the legal activity.
Court Costs Act (GKG)
In the Court Costs Act (GKG), fixed fees are specifically stipulated for certain proceedings in family and guardianship law. Here, set costs are charged for official actions and the initiation of court proceedings, especially where the effort can be standardized and is administratively calculable.
Cost Ordinance for Notaries (GNotKG)
The Court and Notary Costs Act (GNotKG) contains numerous facts where fixed fees are foreseen for notarial activities and court proceedings. Typical examples include certifications, authentication of signatures, and certain entries in the land register or commercial register. The amount of the fee is stipulated by law and is not negotiable.
Distinction from Other Types of Fees
Value-based fee
Unlike the fixed fee, the value-based fee is determined based on the value in dispute or an object value. Here, the fee varies depending on the parties’ financial interests.
Time fee and framework fee
In contrast, the time fee is based on the time spent by the service provider for the respective activity. The framework fee provides a discretionary range within statutory limits, taking into account the scope and difficulty of the activity.
Areas of Application of the Fixed Fee
Judicial Proceedings
Fixed fees are often found in applications and small-volume proceedings, such as applications for the issuance of certain register excerpts, in order-for-payment procedures, or for simple certifications.
Notarial Activities
In the notarial field, numerous fees are structured as fixed fees, such as for the certification of a signature, preparation of copies of official documents, or certain registration procedures.
Administrative Proceedings
Fixed fees are also common in public law for administrative acts, such as the issuance of certificates, driving licenses, or residence certificates.
Amount and Assessment of the Fixed Fee
The amount of the fixed fee is set by law in the respective fee fact. An agreement between the parties that deviates from the statutory determination is not permitted, unless explicitly allowed by law. Responsible authorities, such as courts, notaries, or administrative bodies, are bound by the relevant fee schedules.
Adjustment of the fixed fee is generally carried out by legislative amendment, which regularly takes into account developments in costs in the respective sectors.
Special Features and Legal Consequences
Cost Assessment and Enforcement
Fixed fees are to be applied in the prescribed amount without further justification and, if necessary, enforced by a cost assessment order issued by the competent authority. Objections from parties relating to the individual effort involved are disregarded where the fixed fee has been correctly applied.
Reimbursement of the Fixed Fee
In the context of cost decisions, for example in civil proceedings, the fixed fee may be reimbursed by the losing party depending on the outcome of proceedings, provided it counts as reimbursable costs within the meaning of §§ 91, 104 ZPO.
Criticism and Evaluation of the Fixed Fee
The fixed fee is viewed predominantly positively—especially from the perspective of simplifying costs—but can in individual cases lead to economically disadvantageous situations, particularly if the required effort significantly deviates from average circumstances. In certain areas, legislators address this through tiered fixed fees or special hardship regulations.
Literature and Further Regulations
- Law on the Remuneration of Lawyers (RVG) and Remuneration Schedule (VV RVG)
- Court Costs Act (GKG)
- Court and Notary Costs Act (GNotKG)
- Administrative Costs Acts of the Federal States
Summary
Within fee law, the fixed fee is a key type of charge that serves to standardize, make transparent, and simplify the processing of fees. Its legal bases are found in various special statutory provisions. It is particularly applied in notarial, judicial, and administrative law proceedings. The calculation and amount of the fixed fee are predetermined; individual adjustments are excluded. The legal design aims to ensure predictability and efficiency in fee law.
Frequently Asked Questions
In which legal contexts is the fixed fee applied?
Fixed fees are levied under German law especially in the area of court and notary costs as well as for certain legal services. They are specifically regulated in the Court and Notary Costs Act (GNotKG) and the Law on the Remuneration of Lawyers (RVG). Fixed fees are used where a set charge is stipulated for certain activities, proceedings, or services, regardless of the effort involved and the value in dispute. Examples include costs for notarization of wills by a notary, certain register registrations, order-for-payment procedures, or various standardized court proceedings. The aim is to provide transparency and predictability for the parties involved and to minimize administrative effort.
Is there any leeway in negotiating the amount of compensation for a fixed fee?
No, the fixed fee is set by law at a fixed amount. Neither the parties nor the service providers (such as lawyers or notaries) are able to agree on different compensation. This clearly distinguishes the fixed fee from other compensation models such as flat fees, hourly rates, or the framework fee principle. Exceeding or undershooting the set amount is not intended and, if agreed, is legally invalid. Only where specifically allowed by law are modifications permissible, such as through reduced or increased fee rates due to specific circumstances.
What is the difference between a fixed fee and a framework fee?
In contrast to the fixed fee, where the amount is uniformly and firmly set by law, the framework fee simply defines a range (minimum and maximum), within which compensation is decided based on the specific circumstances of each case. Relevant criteria here include the significance, scope, and difficulty of the matter. The fixed fee, on the other hand, does not look at individual circumstances; the amount specified for the service is always the same regardless of effort.
Can the fixed fee be reduced or waived by the court or administration in certain cases?
A reduction or waiver of the fixed fee is generally only possible if this is explicitly provided for by law or regulation. Some laws give courts and authorities discretionary powers for this purpose, for example in cases of indigence or public interest. As a rule, however, fixed fees are rigidly set, so a reduction or waiver outside of specified exceptions is not permitted. In the area of legal aid, exemption from the fee obligation may be granted; this requires a separate application and assessment of need.
Must fixed fees be paid if a matter is withdrawn or resolved before the activity begins?
The obligation to pay a fixed fee generally arises as soon as the fee-liable action described in the law has been carried out or applied for. If a matter is withdrawn or resolved before the fee-liable activity starts, in many cases no fixed fee is incurred. However, if the withdrawal occurs only after the fee-liable activity has been wholly or partly carried out, the full fee must be paid. The relevant special laws (such as the GNotKG) contain detailed provisions on withdrawal and cancellation.
Is the applicant or the beneficiary liable for the fixed fee?
Liability for payment of the fixed fee is generally determined by the applicable cost law. In court proceedings, it is usually the applicant or plaintiff who is obliged to pay the fixed fees. In the area of notary costs, the person requesting the notarization or official act is regularly liable, but the person for whose benefit it is carried out can also be made liable (‘joint and several liability’). In some cases, joint and several liability may arise for several parties. More detailed information is provided in the relevant legal provisions.
What legal remedy is available if the fixed fee is charged unlawfully?
Depending on the context, those affected may take different legal remedies against the fixing of fixed fees. In court proceedings, an ‘Erinnerung’ (remonstrance) (§ 66 GKG, § 81 GNotKG) is often the appropriate legal remedy, through which the authorization and the amount of the fee can be reviewed. Under the Administrative Procedure Act (VwVfG), an objection can also be lodged against a cost notice. If, upon review, the fee is found to be unlawfully charged, it must be refunded. It is recommended to carefully observe the legal remedy instructions in the fee notice.
