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Lawyer Fees in the UAE: 25% Rate and Contract Terms
Legal fees in the United Arab Emirates are not left to custom or personal estimation; they are governed by express provisions of the law regulating the advocacy and legal consultancy professions. Its first rule is that the fee agreement must be in writing, by any means, before the agreed work is performed, and that fees become due in accordance with that agreement. The law sets specific criteria for assessing their value, permits agreement on an hourly basis, caps any percentage of the adjudicated right at 25% while denying entitlement to it if the case is lost, and grants the court that heard the case — and it alone — the power to reduce or increase the fees. This article sets out all of these rules, what a fee agreement must contain, and what happens upon dismissal, withdrawal or dispute.
I. What Are Fees and What Is a Fee Agreement in Law?
The law defines fees as the monetary consideration due to the advocate or legal consultant for performing the legal work requested by the client. It defines the fee agreement as the contract concluded between the advocate or legal consultant and the client, containing the agreed value of the fees, the manner of their payment, and the type and nature of the work entrusted. These two definitions settle a great many disputes: fees are consideration for requested legal work, and the agreement must carry three elements, not two.
The rule on which everything else is built
The advocate is entitled to charge fees for the work he performs within the limits of his power of attorney, and to recover the expenses required by the conduct of the cases or work in which he is instructed. The fee agreement must be in writing, by any means, before the agreed work is performed, and fees become due in accordance with that agreement. The phrase "by any means" is broad as to form; the phrase "before the work is performed" is strict as to timing — an agreement concluded after work has begun does not satisfy this requirement.
II. The Criteria by Which Fees Are Assessed
The law does not leave the assessment of fees at large. It sets out five considerations to be taken into account in determining the effort involved and assessing the value of the fees due. Their significance is practical: they are the reference the court applies when a dispute arises, and the reasoning on which any professional fee proposal should rest:
III. Forms of Agreement and the Subject Matter of the Fee Contract
The law permits agreement on fees according to the type, nature or circumstances of the work entrusted to the advocate, or on the hourly basis applied by the firm for undertaking and completing that work. It also requires the fee agreement to specify the work entrusted to the advocate and what forms part of its requirements according to law, custom and the nature of that work.
- Judicial proceedings or a stage thereof, such as an appeal by one of the modes of recourse.
- Drafting or reviewing a contract or agreement.
- Giving a legal opinion or advice.
- Conducting enforcement proceedings.
- A specified procedural act within existing proceedings.
Why does precise definition of the subject matter matter?
Because fees become due in accordance with the agreement, and the scope of the agreement draws the line between what it covers and what it does not. An agreement covering one instance does not automatically extend to an appeal, and an agreement covering the proceedings does not automatically extend to enforcement, unless the contract so provides or unless it forms part of the requirements of the work according to law, custom and its nature. The law also provides that where the case that is the subject of the agreement gives rise to further cases and work not taken into account at the time of the agreement, the advocate may claim fees in respect of them.
IV. Fees as a Percentage of the Adjudicated Right — A Cap and a Condition
This is the form of agreement that gives rise to the most disputes, and the law regulates it by two clear restrictions that may not be exceeded:
The two restrictions governing a percentage agreement
The first — the cap: where it is agreed that the fees shall be a percentage of the adjudicated right, that percentage may not exceed 25% of the value of the adjudicated right. The second — the condition: fees in this case are not due if the case is lost. The law refers the conditions of entitlement to such fees to the Executive Regulations. In practical terms, any clause raising the percentage above the cap, or making it payable despite a loss, contravenes an express provision.
V. When Are Fees Due if There Is No Agreement?
The law lays down rules of entitlement where a fee agreement is absent, tying entitlement to the extent to which the work has been completed rather than to the mere acceptance of instructions:
- Where the subject matter is a particular case or a stage thereof such as an appeal: to be entitled to his fees, the advocate must conduct the proceedings on behalf of his client in those proceedings until judgment is rendered on the merits at the instance in which he was instructed, and that judgment is served.
- Where the subject matter is the conduct of judicial enforcement proceedings: he must conduct the proceedings in the enforcement file until a judicial decision terminating it is issued, or enforcement becomes impossible for reasons beyond his control after he has exhausted all legal procedures in the file.
- Where the subject matter is a specified procedural act within existing proceedings or a specified step in an enforcement matter: he must complete the work entrusted to him.
VI. The Court’s Power to Reduce or Increase Fees
A contract is the law of the parties, but the legislator has introduced an important exception in this field and confined its exercise to a single forum:
Who may vary the fees, and in which direction?
The advocate charges his fees in accordance with the contract drawn up between him and his client, and the court that heard the case — and it alone — may, upon the client’s application, reduce the agreed fees if it finds them excessive in relation to the effort and time the case required and the benefit accruing to the client. It may likewise increase the agreed fees upon the advocate’s application where he has devoted more effort and time than was initially estimated in the agreement, applying the five criteria set out above.
A time restriction and the case of no contract
Fees may not be reduced or increased where the agreement on them was concluded after completion of the agreed work. Where no fee agreement exists, or the contract is void, the court that heard the case assesses, in the event of dispute, what is commensurate with the effort expended by the advocate and the benefit accruing to the client. Where the disputed fees relate to other work rather than to a case heard by the court, either the advocate or the client may bring an action for their assessment and recovery in the ordinary manner.
How is an application for assessment made?
An application for assessment of fees is submitted to the court by petition, following the procedures and controls governing orders on petition provided for in the Civil Procedure Law and its Regulations, and the opposing party is served with it. Both the advocate and the client have the right to challenge the assessment order within 15 days following service of the order, by summoning the opposing party to appear before the court that issued it, and the challenge is heard as a matter of urgency.
Periods and deadlines that determine the fate of a claim
- Before the work is performed: the time by which the fee agreement must be in writing, by any means.
- 15 days: the period for challenging the fee assessment order, running from service of the order; the challenge is heard as a matter of urgency.
- 3 years: the lapse of the advocate’s right to claim his fees, running from termination of the retainer, completion of the work, or his dismissal, absent a legitimate excuse, whether the agreement was written or unwritten.
- One month at most: the period during which the advocate continues to conduct the proceedings from the date the notice of withdrawal or termination is sent, where necessary to defend the client’s interests, unless the client or the court notifies him of acceptance of the termination.
- 5 years: the lapse of the client’s right to claim from his advocate the papers and documents deposited with him, running from the end of their relationship, unless otherwise agreed, and likewise where he has not paid the full agreed fees.
- 25%: the cap on the percentage of the value of the adjudicated right, and equally the maximum due to the advocate where dismissal occurs before the work has commenced.
VII. Dismissal, Withdrawal and the Death of the Client
The law addresses the interruption of the relationship before completion of the work through three distinct provisions, each with a different effect on fees:
Dismissal without legitimate cause
Where the client dismisses his advocate without legitimate cause after the work has commenced, the client is bound to pay the full agreed fees as though the advocate had completed the work on his behalf. Where dismissal occurs before the work has commenced, the advocate is entitled to fees for the effort expended in preparation for commencing, not exceeding 25% of the value of the agreed fees. Where no fee agreement exists, an action is brought for their assessment and recovery in the ordinary manner.
Withdrawal and termination of the retainer by the advocate
An advocate wishing to withdraw or terminate his retainer must notify his client or his representative by registered letter with acknowledgement of receipt or by e-mail as the case may be, and must continue conducting the proceedings for one month at most from the date the notice is sent, where necessary for the defence, unless the client or the court notifies him of acceptance of the termination. He must return the power of attorney, the original documents and papers and any advance on fees, unless otherwise agreed. In all cases, withdrawal is not permitted where the case is ready for judgment except with the court’s consent.
Death of the client, and settlement
Where the client dies and his heirs decide not to continue with the advocate, the advocate is entitled to fees for the effort he has expended, and the terms of any agreement concluded between him and the deceased are taken into account in the assessment; where no contract exists, an action may be brought for assessment and recovery. Conversely, where the advocate concludes the case by settlement in accordance with his client’s authorisation, he is entitled to the full agreed fees, unless otherwise agreed.
VIII. Safeguards and Limits Laid Down by Law
- Preferential right: advocates’ fees and the expenses attaching to them enjoy a preferential right ranking immediately after the rights of the government over what has accrued to the client as a result of the advocate’s work or the judgment in the case that is the subject of the retainer.
- Prohibition on purchasing disputed rights: an advocate may not purchase all or part of the rights in dispute.
- Multiple clients: each is liable for his share of the fees, save that each is liable for them in full where the subject matter of the work is indivisible or where joint liability was agreed in the contract; whoever discharges the debt may have recourse against the others to the extent of their shares.
- Multiple advocates from different firms: each is entitled to his fees in accordance with the agreed fee contract, and the retirement or withdrawal of one has no effect on the retainers of the others, unless the power of attorney required them all to act together.
- Court-appointed advocates: the court assesses the fees of an appointed advocate when deciding the case, and its decision in this regard is final.
Warning: commission for introducing clients is a criminal offence
The law criminalises conduct that some mistake for legitimate marketing, providing that any person who seeks, in return for a commission, to acquire clients for an advocate shall be punished by a fine of not less than 20,000 dirhams and not more than 200,000 dirhams, and in the event of repetition by detention for a period of not less than one year. It also prohibits an advocate from advertising himself in a manner inconsistent with the traditions of the profession, or seeking to do so by means of publicity or inducement through intermediaries. If an intermediary offers to find you a lawyer in return for a percentage, you are facing conduct the law punishes.
IX. Practical Guidance Before Signing
What to verify in a fee agreement
- Sign before the work begins, not after: the law requires the agreement to be in writing before the agreed work is performed.
- Confirm the three elements: the value of the fees, the manner of payment, and the type and nature of the work entrusted — these are the components of the contract in the law’s own definition.
- Define the scope and the instance: does the agreement cover appeal? Does it cover enforcement? Ambiguity here is the source of most disputes.
- Separate expenses from fees: the advocate may recover the expenses required by the conduct of the cases, and these are distinct from consideration for the work.
- Review any percentage clause: it may not exceed 25% of the value of the adjudicated right and is not due if the case is lost.
- Keep a signed copy and payment receipts: they are the basis of any subsequent claim or defence before the court.
- Watch the deadlines: 15 days to challenge an assessment order, and 3 years before the right to claim fees lapses.
Legal References
- Federal Decree-Law No. 34 of 2022 concerning the regulation of the advocacy and legal consultancy professions — federal law.
- Cabinet Resolution on the Executive Regulations of the Federal Decree-Law concerning the regulation of the advocacy and legal consultancy profession — Cabinet resolution.
- Cabinet Resolution approving the Charter of the Advocacy and Legal Consultancy Profession — Cabinet resolution.
- Federal Decree-Law No. 42 of 2022 promulgating the Civil Procedure Law — federal law.
Do you need a fee agreement reviewed, or are you in a dispute over legal fees?
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS — Dubai, United Arab Emirates
Frequently Asked Questions
QMust a fee agreement be in writing?
Yes. The law requires the fee agreement to be in writing, by any means, before the agreed work is performed, and provides that fees become due in accordance with that agreement. The words "by any means" mean the form is unrestricted, but the timing is: the writing must precede the commencement of the work. Where the agreement is absent or void, the court that heard the case assesses, in the event of dispute, what is commensurate with the effort expended and the benefit accruing to the client.
QMay fees be agreed as a percentage of the amount awarded?
Yes, but subject to two restrictions. First, the percentage may not exceed 25% of the value of the adjudicated right. Second, such fees are not due if the case is lost. The law refers the conditions of entitlement to these fees to the Executive Regulations. Any clause raising the percentage above this cap, or making it payable despite a loss, contravenes an express provision.
QI dismissed my lawyer midway through the case — what is he entitled to?
The law distinguishes according to the timing of the dismissal. Where dismissal without legitimate cause occurs after the work has commenced, the client is bound to pay the full agreed fees as though the advocate had completed the work. Where dismissal occurs before the work has commenced, the advocate is entitled to fees for the effort expended in preparation, not exceeding 25% of the value of the agreed fees. Where no fee agreement exists, an action is brought for their assessment.
QCan the court reduce the agreed fees?
Yes, and only the court that heard the case may do so. Upon the client’s application it may reduce the agreed fees if it finds them excessive in relation to the effort and time the case required and the benefit accruing to the client; and upon the advocate’s application it may increase them where he devoted more effort and time than was initially estimated. Neither reduction nor increase is permitted where the agreement was concluded after completion of the work.
QWhen does an advocate’s right to claim his fees lapse?
An advocate’s right to claim his fees lapses after 3 years running from termination of the retainer, completion of the work forming its subject matter, or his dismissal, absent a legitimate excuse, whether the agreement was written or unwritten. Where the work is multiple, limitation runs in respect of each item separately, unless the items are so connected as to be indivisible, or it was expressly agreed that no fees would fall due until all of them were completed.
QIs it permissible to pay a commission to someone who brings clients to a lawyer?
No. The law punishes any person who seeks, in return for a commission, to acquire clients for an advocate with a fine of not less than 20,000 dirhams and not more than 200,000 dirhams, and in the event of repetition with detention for not less than one year. It also prohibits an advocate from advertising himself in a manner inconsistent with the traditions of the profession, or seeking to do so by means of publicity or inducement through intermediaries.
This article is published for the purpose of promoting legal awareness and community education. It does not constitute legal advice or a legal opinion on any particular matter, gives rise to no relationship of retainer or legal representation, and contains no price list or fee proposal. The outcome of each case differs according to its facts and documents, and legislative texts and amendments are subject to change. It is always advisable to consult a licensed lawyer for advice specific to your case. AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS accepts no liability for any action taken in reliance on this content without specialised advice. This article is a translation of the Arabic original; in the event of any discrepancy between the two texts, the Arabic text shall prevail as the authoritative reference.
Legal Fee Disputes in Dubai — Fee Agreements, Assessment and Challenge
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS in Dubai drafts and reviews fee agreements, and represents clients in applications for the assessment of fees, in challenges to assessment orders before the competent courts at all levels, and in actions for the recovery of fees and the defence thereof. If you are looking for a lawyer to review a fee agreement in Dubai, a lawyer for a dispute over legal fees, or a lawyer for the assessment of fees where no contract exists, the firm follows the matter from the drafting of the agreement through to the judicial claim and the challenge.
Our Services Across the Other Emirates
The firm’s work also extends to Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, since the law regulating the advocacy and legal consultancy professions is a federal law applying to all who practise the profession in the State, while emirates having local judicial authorities may regulate the practice of the profession before them under their local legislation. If you are looking for a lawyer for fee disputes in Abu Dhabi, Sharjah or the other emirates, you may contact the firm to assess your legal position.