Concept and Significance of the Value in Dispute
The value in dispute is a central term in German law and refers to the value of the disputed or procedural matter that is relevant within the context of judicial or extrajudicial proceedings. It serves as the basis for calculating fees, particularly court and Rechtsanwalt fees. The value in dispute is regulated in numerous areas of law and has significant practical relevance for cost decisions and reimbursement of costs in the context of court and out-of-court disputes.
Legal Basis of the Value in Dispute
Statutory Regulation
The determination of the value in dispute is primarily governed by the provisions of the Court Costs Act (GKG), the Lawyers’ Remuneration Act (RVG), and specific procedural rules, such as the Code of Civil Procedure (ZPO), the Administrative Court Procedure Act (VwGO), the Fiscal Court Procedure Act (FGO), and the Social Court Act (SGG). Numerous individual laws, for example, the Act on Court and Notary Costs for Voluntary Jurisdiction (GNotKG), regulate additional areas.
Distinction of Terms: Value in Dispute, Amount in Dispute, Value of Transaction
Although the terms ‘value in dispute’, ‘amount in dispute’, and ‘value of transaction’ are often used synonymously, there are distinctions among them:
- Amount in Dispute: Specifically refers to the value of the subject of dispute in court proceedings, especially in actions at law.
- Value of Transaction: Primarily applies in notarial and registry-specific proceedings, such as certifications in land register law.
- Value in Dispute: Encompasses the general reference value for the calculation of fees in the respective procedure and applies both in judicial and extrajudicial matters.
Depending on the legal field and type of matter, different value concepts may thus be relevant.
Practical Significance of the Value in Dispute
Fee Calculation
The value in dispute is decisive for the amount of fees incurred. Both the GKG and the RVG base the determination of fees on the value of the matter. Calculation is made according to a statutory fee table, whereby higher values in dispute lead to higher fees.
Example in Civil Proceedings
In civil proceedings, the value in dispute is generally determined by the parties’ economic interest. For example, if a claim for payment of 5,000 euros is filed, the value in dispute usually corresponds to the claimed amount.
According to § 3 ZPO, the amount in dispute, and thus also the value in dispute, is to be determined according to the objective value of the matter, right, or claim in dispute.
Significance for Cost Reimbursement
As part of the cost decision at the conclusion of court proceedings, reimbursable costs between the parties are also calculated based on the value in dispute. The party losing the proceedings is generally required to bear all costs incurred based on the value in dispute.
Significance in Out-of-Court Matters
Even in out-of-court matters, such as advice and representation activities, the value in dispute is the basis for fee calculation (§ 34 RVG). Even in cases of reconciliation fees and legal aid, the value in dispute is the decisive reference.
Determination and Assessment of the Value in Dispute
Principles of Value Assessment
The value in dispute is either determined by the parties themselves or set by the court or competent authority. The guiding principle is that the value corresponds to the economic significance of the matter for the parties.
Special Regulations and Minimum Values
Statutory minimum values are set forth in various laws, such as § 23 GVG, which prescribes a minimum amount in dispute of 5,000 euros for first-instance actions at the regional court. In addition, there are often special rules for certain types of proceedings:
- In family law matters, there are special assessments, such as according to the so-called procedural value (§ 40 FamGKG).
- In labor law disputes, the value is generally based on three times the monthly gross wage (§ 42 GKG).
Application for Value Assessment
According to § 63 GKG, an application for determination of the value in dispute may be filed if there is uncertainty regarding the amount of fees. The court or relevant authority subsequently issues a formal value assessment order, against which the parties may lodge an objection in accordance with § 68 GKG.
Possible Special Circumstances
- In proceedings involving items that cannot be quantified, such as actions for injunction or declaratory judgments, an estimation of the economic interest is required.
- Where there are several items in dispute, their values are, as a rule, added together, unless determined otherwise by statute.
Value in Dispute in Different Types of Proceedings
Civil Proceedings
In civil proceedings, the value in dispute is closely linked to the amount in dispute and is generally determined by the plaintiff’s interest. Special regulations, such as for eviction actions or matrimonial matters, also apply.
Administrative Proceedings
According to § 52 GKG, the value in dispute in administrative proceedings is usually determined by the applicant’s economic interest. For certain proceedings, such as asylum and immigration law matters, fixed values exist.
Labor Court Proceedings
In labor court proceedings, the value is calculated in accordance with § 61 ArbGG, generally based on the value of the claim asserted or—in wrongful termination lawsuits—three times the monthly gross salary.
Social Court Proceedings
In social court proceedings, the provisions of the SGG govern value assessment. Commonly, the value is based on the amount of monetary benefits sought or the economic advantage involved.
Family Law Proceedings
For family and inheritance law proceedings, there are special regulations for value assessment under FamGKG and GNotKG. For example, in divorce proceedings, the procedural value is determined by three times the net monthly income of both spouses.
Appeals and Review of Value Assessment
The judicial determination of the value in dispute can be challenged by way of an objection pursuant to § 68 GKG. Such proceedings are often relevant when the parties dispute the amount of fees determined or when it concerns reimbursement after the legal conclusion of a case.
Significance in the International Context
Even in international legal disputes, especially before arbitral and international courts, the value in dispute is used as the basis for fee determination and cost decisions. The specific implementation, however, follows the respective procedural rules and may differ from the German system.
Summary
The value in dispute holds central importance in German law for fee and cost decisions in all judicial and extrajudicial proceedings. It is based on the economic significance of the subject matter and regularly forms the basis for calculating court and Rechtsanwalt fees as well as the reimbursement claims of the parties. The determination and assessment of the value in dispute are shaped by numerous statutory regulations and vary according to the type of proceedings and area of law. Accurate assessment of the value in dispute is therefore essential for the practical conduct and resolution of legal disputes.
Frequently Asked Questions
What role does the value in dispute play in calculating attorney fees?
The value in dispute is a crucial criterion for the calculation of attorney and court costs in the German legal system. According to the Lawyers’ Remuneration Act (RVG), the amount of fees for legal activities is generally based on the value of the subject matter in dispute, i.e., the parties’ economic interest in the proceedings. The value in dispute serves as the basis for the application of fee tables, which determine the specific costs. The higher the value in dispute, the higher the attorney’s fees. In court proceedings, the value in dispute is determined ex officio, while for out-of-court matters, agreement between client and attorney is possible; otherwise, the statutory provisions of the RVG apply. The value in dispute is also decisive for calculating court fees under the Court Costs Act (GKG).
In which proceedings is determining the value in dispute particularly relevant?
Determining the value in dispute is especially important in civil disputes, family law matters, and labor court proceedings. For example, the value in dispute is relevant in actions before civil courts, when assessing fees for preliminary injunctions, in the context of injunctive relief claims, in labor court actions (especially wrongful dismissal claims), as well as in divorce and equalization of pension rights proceedings. It also often determines notary fees. In certain proceedings, such as actions for declaration, the value is determined according to the party’s interest in the declaration. In payment order proceedings and in enforcement proceedings, the value in dispute also serves as the basis for fee calculation.
How is the value in dispute determined in court proceedings?
In court proceedings, the value in dispute is usually determined by the competent court. This is done according to the Court Costs Act (GKG) or particular value rules in specific laws, such as family law (§ 43 et seq. FamGKG). In specified claims, the value in dispute usually equals the claimed amount. In other cases, such as unspecified claims for injunction or declaratory relief, the plaintiff’s or applicant’s economic interest is decisive. The parties may give their opinion, but the determination is at the discretion of the court. The value in dispute can be challenged by objection pursuant to § 68 GKG.
What effect does the value in dispute have on legal aid?
The value in dispute is also relevant for the granting and calculation of legal aid. The fees covered by legal aid are similarly based on the amount in dispute or value in dispute. If the value in dispute is high, the costs covered by the state increase, provided legal aid is granted. The granting of legal aid itself, however, depends not on the value in dispute, but on the financial and personal circumstances of the applicant, though the value in dispute affects how much can be reimbursed to the attorney.
What special rules apply where there are several items in dispute?
If proceedings involve multiple items in dispute, for instance where several claims or applications are joined, the values in dispute are generally added together. This applies as long as the matters in dispute are not economically identical or interdependent. Exceptions apply, for example, if the value of one subject includes the value of the other, or if the matters in dispute are so closely connected that they are considered economically as a single unit. The exact handling depends on the value provisions of the relevant specialty law.
Can the value in dispute be changed retrospectively?
The value in dispute can be changed during court proceedings if, for example, the value of the subject matter changes during the process—particularly through an increase or decrease in the amount claimed or a change in the subject (e.g. by expanding the claim or partial withdrawal). Courts are obliged to determine the correct value in dispute and may amend it retrospectively. An amendment may also be made upon application by a party or the state exchequer, if new information is presented or errors in the initial value determination need correction.
What legal options exist against an allegedly incorrect determination of the value in dispute from a party’s perspective?
Against a determination of the value in dispute that a party considers incorrect in judicial proceedings, the legal remedy of objection pursuant to § 68 GKG may be brought. This must be done within six months of notice of the cost decision. The court then examines whether the determination was made correctly. In out-of-court disputes, an agreement with the attorney is generally decisive, and in the event of dispute, the competent court or the bar association may be called upon. An incorrect value determination can affect fee assessment and cost reimbursement obligations; therefore, review and correction can have both legal and financial consequences for the party concerned.
