Terms and Conditions

Scope of Application

1. The Terms and Conditions of Engagement apply to all activities and acts of representation—whether before courts or administrative authorities or outside of such proceedings—performed in the course of a contractual relationship between the attorney or law firm (hereinafter referred to simply as “Attorney”) and the client (hereinafter also referred to as the “mandate”).
2. The terms and conditions of engagement also apply to new engagements, unless otherwise agreed in writing.

Assignment and Power of Attorney

1. The attorney is entitled and obligated to represent the client to the extent necessary and appropriate for the fulfillment of the retainer. If the legal situation changes after the retainer has ended, the attorney is not obligated to inform the client of such changes or their resulting consequences.
2. Upon request, the client must sign a written power of attorney for the attorney. This power of attorney may authorize the attorney to perform individual, specifically defined legal acts or all possible legal acts.

Principles of Representation

1. The attorney must conduct the representation entrusted to him in accordance with the law and defend the client’s rights and interests against any person with diligence, loyalty, and conscientiousness.
2. The attorney is generally entitled to perform his or her services at his or her own discretion and to take all necessary steps—in particular, to employ all means of attack and defense in any manner—provided that this does not conflict with the client’s instructions, his or her conscience, or the law.
3. If a client issues an instruction to an attorney, compliance with which would conflict with the principles of proper professional conduct for attorneys based on law or other professional rules (e.g., the “Guidelines for the Professional Practice of Attorneys” [RL-BA] or the case law of the Supreme Appeals and Disciplinary Commission for Attorneys and Trainee Attorneys [OBDK]), the attorney must refuse to comply with the instruction. If, in the attorney’s view, instructions are inappropriate or even detrimental to the client, the attorney must inform the client of the potentially detrimental consequences before carrying them out.
4. In cases of imminent danger, the attorney is entitled to take or refrain from taking an action that is not expressly covered by the retainer or that conflicts with an instruction given, if doing so appears urgently necessary in the client’s best interest.

Client’s Obligations to Provide Information and Cooperate

1. Once the retainer has been granted, the client is obligated to promptly provide the attorney with all information and facts that may be relevant to the performance of the retainer and to make all necessary documents and evidence available.The attorney is entitled to assume the accuracy of the information, facts, documents, records, and evidence, unless their inaccuracy is obvious.The attorney shall work to ensure the completeness of the facts by asking the client specific questions and/or using other appropriate means. With regard to the accuracy of supplementary information, the second sentence of Section 4.1 applies.
2. While the retainer is in effect, the client is obligated to notify the attorney immediately upon becoming aware of any changed or new circumstances that could be relevant to the performance of the engagement.

Confidentiality Agreement, Conflict of Interest

1. The attorney is obligated to maintain confidentiality regarding all matters entrusted to him and all facts that have otherwise come to his knowledge in his professional capacity, the confidentiality of which is in the interest of his client.
2. The attorney is authorized to assign all employees to handle matters in accordance with applicable laws and guidelines, provided that these employees have been demonstrably instructed regarding their obligation to maintain confidentiality.
3. Only to the extent necessary to pursue the attorney’s claims (in particular, claims for the attorney’s fees) or to defend against claims against the attorney (in particular, claims for damages by the client or third parties against the attorney), the attorney is released from the duty of confidentiality.
4. The client may release the attorney from the duty of confidentiality at any time. The client’s release of the attorney from the duty of confidentiality does not relieve the attorney of the obligation to determine whether his or her statement is in the client’s best interest.
5. The attorney must determine whether accepting a case would create a risk of a conflict of interest as defined by the provisions of the Rules of Professional Conduct for Attorneys.

A Lawyer’s Duty to Report

Subdelegation and Substitution

Fee

1. Unless otherwise agreed, the attorney is entitled to a reasonable fee.
2. Even if a lump-sum or hourly fee has been agreed upon, the attorney is entitled to at least the amount of costs recovered from the opposing party in excess of that fee, to the extent that such costs can be collected; otherwise, the attorney is entitled to the agreed-upon lump-sum or hourly fee.
3. In addition to the attorney’s fee (as agreed upon with the attorney), value-added tax at the statutory rate, necessary and reasonable expenses (e.g., for travel costs, telephone, fax, and copies), as well as cash disbursements made on behalf of the client (e.g., court fees).
4. The client acknowledges that any estimate of the anticipated fee provided by the attorney—unless expressly designated as binding—is non-binding and should not be regarded as a binding cost estimate (within the meaning of § 5(2) KSchG), because the scope of the services to be provided by the attorney, by its very nature, cannot be reliably assessed in advance.
5. The client will not be billed for the time and effort involved in billing and preparing fee statements. However, this does not apply to the time and effort incurred in translating service specifications into a language other than German at the client’s request. Unless otherwise agreed, the following will be billed: the time and effort spent drafting letters, at the client’s request, to the client’s auditor, in which, for example, the status of pending cases, a risk assessment for the creation of provisions, and/or the status of outstanding fees as of the balance sheet date are outlined.
6. The attorney is entitled to issue invoices and request advance payments at any time, but at least on a quarterly basis.
7. If the client is a business entity, a fee invoice that has been sent to the client and is properly itemized shall be deemed approved unless and to the extent that the client objects in writing within one month (as of the date of receipt by the attorney) of receiving it.
8. If the client defaults on payment of all or part of the fee, the client shall pay the attorney default interest at the statutory rate, but not less than 4% above the applicable base interest rate. Any statutory claims beyond this (e.g., § 1333 ABGB) remain unaffected.
9. All court and administrative costs (out-of-pocket expenses) and fees (e.g., for outsourced services) may—at the attorney’s discretion—be billed directly to the client for payment.
10. If an engagement is granted by multiple clients in a single legal matter, they are jointly and severally liable for all claims arising therefrom on the part of the attorney.
11. The client’s claims for reimbursement against the opposing party are hereby assigned to the attorney in the amount of the attorney’s fee claim as of the date such claims arise. The attorney is entitled to notify the opposing party of the assignment at any time.

Liability of the Attorney

1. The attorney’s liability for erroneous advice or representation is limited to the insurance coverage available for the specific claim, but shall not be less than the amount of coverage specified in § 21a of the German Attorney’s Code (RAO), as amended. This currently amounts to €400,000 (in words: four hundred thousand euros) and, in the case of law firms organized as limited liability companies, €2,400,000 (in words: two million four hundred thousand euros). If the client is a consumer, this limitation of liability applies only in cases of damage caused by slight negligence.
2. The maximum amount applicable under Section 9.1 covers all claims against the attorney arising from defective advice and/or representation, including, in particular, claims for damages and reduction of fees. This maximum amount does not include the client’s claims for reimbursement of fees paid to the attorney. Any deductibles do not reduce liability. The maximum amount applicable under Section 9.1 refers to a single insured event. If there are two or more competing claimants (clients), the maximum amount for each individual claimant shall be reduced in proportion to the amount of their respective claims.
3. When retaining a law firm, the limitations of liability set forth in Sections 9.1 and 9.2 also apply in favor of all attorneys working for the firm (whether as partners, managing partners, employed attorneys, or in any other capacity).
4. The attorney is liable for third parties (in particular external experts) who are engaged to perform specific services with the client’s knowledge as part of the provision of services—and who are neither employees nor partners—only in cases of negligence in their selection.
5. The attorney is liable only to his or her client, not to third parties. The client is obligated to expressly inform any third parties who, as a result of the client’s actions, come into contact with the attorney’s services of this fact.
6. A lawyer is liable for knowledge of foreign law only if there is a written agreement to that effect or if the lawyer has offered to review foreign law. EU law is never considered foreign law, but the laws of the member states are.

Statute of Limitations/Preclusion

The Client’s Legal Expenses Insurance

1. If the client has legal expense insurance, he or she must notify the attorney of this immediately and provide the necessary documents (if available). However, regardless of this, the attorney is also obligated to independently obtain information regarding whether and to what extent legal expense insurance exists and to apply for coverage under such insurance.
2. The client’s disclosure of legal expense insurance and the attorney’s obtaining of coverage under such insurance do not affect the attorney’s claim for fees against the client and shall not be construed as the attorney’s consent to accept the payment made by the legal expense insurer as his or her fee. The attorney must inform the client of this.
3. The attorney is not required to bill the legal expense insurance company directly for the fee, but may instead request payment of the full amount from the client.

Termination of the Mandate

1. The attorney-client relationship may be terminated at any time by the attorney or the client without notice and without stating a reason. The attorney’s right to fees remains unaffected.
2. In the event of termination by the client or the attorney, the attorney must continue to represent the client for a period of 14 days to the extent necessary to protect the client from legal disadvantages. This obligation does not apply if the client revokes the retainer and expressly states that he or she does not wish the attorney to continue representing him or her.

Obligation to Return Property

1. Upon termination of the attorney-client relationship, the attorney must return the original documents to the client upon request. The attorney is entitled to retain copies of these documents.
2. If, after the conclusion of the retainer, the client requests additional documents (or copies of documents) that the client has already received in the course of the retainer, the client shall bear the costs.
3. The attorney is obligated to retain the files for a period of five years following the termination of the retainer and, during this time, to provide the client with copies as needed. Section 13.2 applies to the bearing of costs. If longer statutory retention periods apply for the duration of the retention obligation, these must be observed. The client agrees to the destruction of the files (including original documents) upon expiration of the retention obligation.

Governing Law and Jurisdiction

1. The Terms and Conditions and the client-attorney relationship governed by them are subject to Austrian substantive law.
2. For legal disputes arising out of or in connection with the contractual relationship governed by these Terms and Conditions—including disputes regarding its validity—the parties agree that the court with subject-matter jurisdiction at the attorney’s place of business shall have exclusive jurisdiction, unless otherwise required by mandatory law. However, the attorney is entitled to bring claims against the client before any other court in Austria or abroad within whose jurisdiction the client has its registered office, residence, a branch office, or assets. With respect to clients who are consumers within the meaning of the Consumer Protection Act (KSchG), the jurisdiction provisions of Section 14 of the KSchG apply.

Final Provisions

1. Any amendments or additions to these Terms and Conditions of Engagement must be made in writing to be valid, unless the client is a consumer as defined by the Consumer Protection Act (KSchG).
2. Notices from the attorney to the client shall in any case be deemed to have been received if they are sent to the address provided by the client upon retention of the attorney or to any amended address subsequently communicated in writing. However, unless otherwise agreed, the attorney may correspond with the client in any manner the attorney deems appropriate. Unless otherwise specified, communications required to be made in writing under these terms of engagement may also be sent by fax or email. Unless otherwise instructed in writing by the client, the attorney is entitled to conduct email correspondence with the client in unencrypted form. The client declares that he or she is aware of the associated risks (in particular, access, confidentiality, and alteration of messages during transmission) and, with full knowledge of these risks, agrees that email correspondence will not be conducted in encrypted form.
3. The client expressly agrees that the attorney may process, disclose, or transfer personal data concerning the client and/or the client’s company (as defined in the Data Protection Act) to the extent that this is necessary and appropriate for the fulfillment of the tasks entrusted to the attorney by the client or arises from the attorney’s legal or professional obligations (e.g., participation in electronic legal proceedings, etc.).
4. The invalidity of one or more provisions of these Terms and Conditions or of the contractual relationship governed by these Terms and Conditions shall not affect the validity of the remainder of the agreement. The contracting parties agree to replace the invalid provision(s) with a provision that comes as close as possible to the economic result of the invalid provision(s).