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Fees and Cost

1 Two Systems

There are usually two fee systems in Japan; 1) combination of starting fee (initial retainer fee) and success fee charged based upon the result, and 2) time charge.

2 Starting fee and Success fee

These fees are calculated based upon the economic value of the case. For example, if a case is economically valued as 10 million yen (the value is called “economic value of the dispute”), a standard starting fee is 6%, 600,000 yen (and tax) . Success fee is charged to the extent the targeted result is realized through representation. If you seek a collection of 10 million yen and the actual collection is five million, the success fee is about 6.8%, 340, 000 yen plus tax.

Thus the calculation of fees is determined by the factor of a) economic value of the case, 2) percentage for starting fee, 3) percentage for success fee and 4) modification variances.

3 Decision of Economic Value of the case (examples)

1)
In the case of a monetary claim such as collection of account receivable, the total amount of the claim
2)
In cases concerning ownership of properties, an amount equivalent to the market value of the properties
3)
In the case of a claim for recurrent payment or performances over a period of time, 70% of the total claim thereof;except in the case of the term being indefinite, in which case an amount equivalent to payments over seven years
4)
In the case of a compulsory execution of a monetary claim, the amount of the claim.
5)
In the event the economic value cannot be determined due to the characteristics of the case such as divorce without economic claims or child custody, the value shall be regarded as 8 million yen for the purpose hereof.

4 Quick Reference for Starting fee and Success fee(without tax and modification)

Economic Value
(1,000 yen)
Starting fee
(%)
Median Amount
(Yen)
Success fee
(%)
Median Amount
(Yen)
3,000 8.0% 240,000 16% 480,000
5,000 5~8% 340,000 11~16% 680,000
8,000 5~8% 490,000 11~16% 980,000
10,000 5~8% 590,000 11~16% 1,180,000
30,000 5~8% 1390,000 11~16% 3,180,000
50,000 3~5% 2190,000 6.5~11% 4,380,000
100,000 3~5% 3690,000 6.5~11% 7,380,000

5 Modification Variances

1)
When the gap between the disputed amount of the case and the realistic value is apparently excessive in light of the actual circumstances of the matter, the modification shall be made to reduce the economic value of the case.
2)
When the time spent and effort made for the representation are significantly light, the fee shall be reduced except when such solution was not ordinary and it has been led by the professional expertise of the attorney.
3)
When the special effort or additional service (translation, negotiation, research, public relation etc) was made during the course of the representation and they have been reflected on the result, the modification shall be made to increase the fee.
4)
When the time for the representation becomes extraordinary longer than usual by a reason not attributable to our service, the modification shall be made to increase the fee.
5)
Above modification shall be firstly discussed between the attorney and the client and amicably settled through negotiation. In case of disagreement, the fee shall be determined based upon the representation contract. If the agreement cannot be still reached, the fee dispute shall be resolved by the Osaka Bar Association’s Arbitration.

6 Time charge

If either party may consider the hourly base charge is reasonable for the case, we will give you the hourly rate for the case and charge based upon the actual time recorded during the course of the representation. The hourly rates for attorneys vary depending upon each attorney and a field of laws in question. Mr. Ikeda’s hourly rate is between 20,000 yen to 40,000 yen. Mr. Hara’s hourly rate is 20,000 yen to 35,000 yen.

We may ask our clients to deposit certain amount of initial retainer to secure the payment. We will send a bill each month with a record of the time and service provided for the representation, and ask our clients to pay the bill monthly. Time charge is usually fit for corporate clients who ask us to provide specific service for new projects.

7 Expenses

We will also bill our clients for our disbursement in connection with this matter. Such disbursement may include the following types of costs and expenses: translator’s cost and/or any expert cost if officially requested by the court. Normal Transportation cost between our office and Osaka District Court or Family Court, communication cost, and copy cost are included in the fee. But if we need to go to other court such as Tokyo District Court, we charge Super Express Train fare. In case we need to copy substantial volume of records or documents in connection with the case, we may request our clients to burden such extra cost. We will let our clients know in advance for such cost.

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Fees and Cost