Treatment of contingency fees in the German legal fee system

Unilike in US civil litigation where contingency fees are almost customary such arrangements are not allowed and therefore not concluded in Germany.

Whereas it is principally possible and usual in commercial cases to agree on higher fees or hourly rates, German law generally (with some singulary exceptions) prohibits contingency fees.

One must understand that risk assessment in German civil cases is easier because the outcome in German civil litigation with judge-made final decisions is typically much better to be assessed than in the American system .

Due to the German rule that the loser pays all costs and fees in litigation contingency fees are in the interest of clients because they only pay when they have won the case and subsequently the attorney has to and will examine the prospects of the case carefully in advance.