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Lawyers challenge right of courts to limit fees in Constitutional Court
26.02.2016
Affiliate company of Shell oil company appealed against judicial practice that decreases the price of legal services payable by the losing party, to the Constitutional Court of Russia. At the beginning of the year the Supreme Court fixed a “reasonable” amount of legal expenses, but the company thinks that the compensation should take into account market prices, rather than “lowest practicable” prices for services.
Lawyer of arbitration and litigation practice of YUST Law Firm Dmitry Smolnikov told Pravo.ru portal, that the case involves legal provisions containing assessment criteria, and they are not guaranteed against loose construction: "The remedy is usually the same - changing the flexible provisions to legally established rates. However, it is another question whether the lawyers are satisfied with this mechanism. Another option is to elaborate clear criteria of recovering legal expenses in the Supreme Court through judicial practice. Based on the statement that “the winner takes it all”, the only solution is to recover all expenses. As an option, a reverse presumption of reasonableness of all actually incurred legal expenses can be introduced”.
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Affiliate company of Shell oil company appealed against judicial practice that decreases the price of legal services payable by the losing party, to the Constitutional Court of Russia. At the beginning of the year the Supreme Court fixed a “reasonable” amount of legal expenses, but the company thinks that the compensation should take into account market prices, rather than “lowest practicable” prices for services. Lawyer of arbitration and litigation practice of YUST Law Firm Dmitry Smolnikov told Pravo.ru portal, that the case involves legal provisions containing assessment criteria, and they are not guaranteed against loose construction: "The remedy is usually the same - changing the flexible provisions to legally established rates. However, it is another question whether the lawyers are satisfied with this mechanism. Another option is to elaborate clear criteria of recovering legal expenses in the Supreme Court through judicial practice. Based on the statement that “the winner takes it all”, the only solution is to recover all expenses. As an option, a reverse presumption of reasonableness of all actually incurred legal expenses can be introduced”.
Read more
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