International

Plans to cap Polish legal fees put on ice

Author: james.illman@legalweek.com

Published: 22/11/2007 02:04

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Controversial plans to cap legal fees in Poland look set to be ditched following the controversial ruling party being ousted in last month’s general election.

The Citizens’ Platform Party, which has a more liberal economic agenda, easily won the polls, and local partners believe there is now little chance of the new regime imposing the cap.

The outgoing Law and Justice Party, which had been in power since 2005, had tried to introduce a law to cap legal fees at Ä70 (£50) an hour, a move which caused outrage among both local and foreign firms and also saw the UK Law Society voicing its disapproval.

The cap would have been a major blow to the local market where top partners charge around Ä450 (£322) per hour and the mid-tier firms charge about Ä300 (£215).

While rates are low in comparison to City billings, Poland is the largest economy in the Central and Eastern European region and a number of the UK’s biggest law firms have offices there.

Clifford Chance, Allen & Overy, Eversheds and DLA Piper all have offices in Warsaw as well as a number of large US law firms including White & Case.

Michael Davies, name partner of local independent Siemiatkowski & Davies, said: “Nothing is definite but the [fee cap on law firms] was very much a platform of the previous government and in particular the previous Minister of Justice.”

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