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Fairness in legal fees: harmonizing fairness and competitiveness

Luis Gabriel Arbeléz, Columnist, Mäs Colombia

Luis Gabriel Arbeláez Marín

Abogado Especializado en Derecho Laboral y Derecho de la Seguridad Social. Director Jurídico Arbeláez & Cristiano LLC.

In terms of legal fees, it is important to explore the challenge of establishing fair rates in the Colombian legal world, considering procedural loyalty and peer-to-peer collaboration.

In the complex web of the practice of law in Colombia, a crucial challenge for litigators in any field, regardless of their experience, is to establish fair fees. This issue goes beyond what classrooms teach and entails reflecting on how to ensure fair legal fees, in a context where procedural loyalty and peer collaboration are often neglected.

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This article is intended to remind colleagues and clients of the importance of considering unified rates when setting the cost of their work in 2023. These rates, recently updated by the Ministry of Justice, transcend mere figures and shape the competitive environment in which legal practice operates.

Today, these professional rates, meticulously adjusted to the economic situation, should be interpreted as benchmarks that guide in the midst of competition. However, despite their economic adaptation, these rates do not always receive an adequate response in the dynamics between lawyers and clients.

In addition to the cost, the trajectory of the legal professional is a key factor in establishing fees, a variation that should be reflected in an ascending and not descending manner, since it is precisely here where the ethical dilemmas that we criticize so much arise.

Unfortunately, as we travel through the legal world, it is commonplace to lose clients to colleagues who opt for considerably lower fees, which not only threatens financial stability, but also raises ethical dilemmas. The question arises: how to preserve the integrity of the profession when the temptation to reduce fees to retain clients arises?

At this crossroads, the concept of peer-to-peer collaboration, which should underpin the legal community and should be instilled as a priority in law school classrooms, is overshadowed by the constant pressure to maintain a strong client base.

At this crossroads, the need to establish fair legal fees collides with increasing competition. In this maze of solutions, it becomes apparent how procedural loyalty, which should be the moral compass, is sometimes threatened by the temptation to give in to clients’ economic expectations.

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Undeniably, legal fee schedules play a fundamental role in establishing clear guidelines and a solid foundation for the attorney-client relationship.

However, in an environment where transparency and ethics often yield to competitiveness, these fees face difficulties in fulfilling their primary purpose. Procedural loyalty, which should guide every step, is sometimes undermined by the urgency to win and retain cases at any cost.

At this point, legal training takes on an even more relevant dimension. Law schools must provide not only technical, but also ethical tools on the subject of legal fees, as the ability to set rates that reflect the value of services and are fair to both lawyers and clients must be a pillar of training.

Throughout the legal journey, the challenges go beyond courtrooms and codes, and setting appropriate fees in a competitive environment and maintaining procedural loyalty and collaboration as foundations are constant topics of reflection. In balancing economic demands with professional integrity, ethical training and ongoing reflection are crucial tools for successfully moving forward in this intricate maze.

In the complex legal practice, the relationship between lawyers and clients is a partnership. Clients also have a role in respecting and abiding by agreements with legal professionals, remembering that the practice is about means and not results, so a lawyer should never, ever promise a 100% chance of success in litigation. This is precisely what muddies the practice of our profession.

Mutual respect, open communication and adherence to agreements are fundamental to maintain a solid relationship based on attorney-client trust. It is key to prevent the parties from becoming immersed in complex labor proceedings to collect the agreed legal fees or in disciplinary proceedings against the lawyers for an excess in the charges made.

In short, the practice of law in Colombia is a complex environment in which every decision on legal fees can have significant impacts.

In the midst of fierce competition, procedural loyalty and ethics emerge as guiding lights towards a safe professional practice. As the fee-setting maze poses challenges, it is essential to equip future lawyers not only with technical knowledge, but also with a value system to guide key decisions.

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