National Development and Reform Commission and Ministry of Justice, Measures for the Administration of Lawyers' Fees and Charges for Services

Issued: April 13 2006
Effective: December 1 2006
Interpreting authorities: National Development and Reform Commission in conjunction with Ministry of Justice
Applicability: These Measures apply to the charging of fees for the provision of legal services to clients by law firms established in accordance with the PRC Lawyer Law and lawyers who are allowed to practise (Article 2).

Main contents: When providing the following services, law firms shall bill clients in accordance with government-directed prices: (1) representation in civil cases; (2) representation in administrative cases; (3) representation in state compensation cases; (4) provision of legal consultation, representation in appeals and prosecution and application for pre-trial release under a bond for a suspect in a criminal case, or acting as the defence lawyer for the defendant or as the lawyer representing a private plaintiff or victim; and (5) representation in appeals for different types of litigation cases. When providing other types of services, law firms shall charge the market-regulated prices (Article 5). Fees and charges following market-regulated prices shall be determined by the law firm and its client through consultation (Article 9). Article 10 states that hourly billing may apply to all legal practice. When undertaking a civil case on matters involving property, if a client still requests to be represented on a contingency basis after being informed of the government-directed price, the law firm may charge a contingency fee (except in marriage and probate-related cases) and demands for the payment of labour remuneration, among other exceptions (Article 11). Lawyers are prohibited from charging a contingency fee in criminal cases and class litigation (Article 12). The contingency fee may not exceed 30% of the amount of the subject matter in a fees and charges agreement (Article 13). After a law firm and its client have signed an agreement, neither side may unilaterally change a fee or charge item or raise the fee or charge amount. If a change is required, the law firm must obtain the client's written consent in advance (Article 17). When a law firm establishes a branch or sub-branch in another region, the branch or sub-branch shall follow the regulations on fees and charges of the locality (Article 24). When a law firm provides legal services in a place other than that of its establishment, the law firm may follow the regulations on fees and charges of the place of establishment or the place where the services are provided. Specific measures shall be reached by the law firm and the client through consultation (Article 25).
Related legislation: PRC Lawyers Law (Amended), oct 28 2007, CLP 2007 No.10 p.83 and PRC Pricing Law, Dec 29 1997, CLP 1998 No.2 p.51
Repealed legislation: Tentative Measures for the Administration of Lawyers' Fees and Charges for Services, Mar 3 1997 and Circular on the Formulation of Temporary Standards on Lawyers' Fees and Charges for Services by Different Localities for the Time Being, 2000