An overview of the rights available to clients in fee disputes with their lawyer — fee agreements, excessive billing, contingency arrangements, and withholding of client funds and files.
Common disputes between clients and lawyers concern what exactly the fee agreement covered, which services were included and which were excluded, and under what circumstances it can be modified during representation. A vaguely drafted fee agreement may open the door to charges the client did not expect. A clear written agreement is a foundational client protection, and when a dispute arises it should be examined under the rules of contract interpretation and accepted professional practice.
A lawyer may not charge fees that are not reasonable in relation to the work performed, the complexity of the matter, and market practice. Where the client receives an invoice with no breakdown, is billed for hours not worked, or receives an account that appears disconnected from the actual scope of work — the charge may be challenged both in civil court and before the Fee Committee of the Israel Bar Association.
Contingency fee arrangements — where the lawyer is entitled to a percentage of the awarded compensation — are subject to specific rules under Israeli law and limits set by the case law. Common disputes address the basis for calculating the percentage, whether an achieved settlement is included in the arrangement, and the actual amount paid to the client after deduction of fees. A client who believes their lawyer took more than agreed is entitled to seek review in the appropriate forums.
A lawyer holding funds received on a client's behalf must transfer them without delay — withholding funds, whether in the context of a fee dispute or for any other reason, is a serious breach of the ethical rules. Similarly, the client is the owner of the file for all purposes and is entitled to a copy of every document prepared for them or received in their name. Refusal to hand over documents, even where a fee dispute exists, contravenes the ethical rules and may give rise to a Bar complaint and civil action.
A Bar complaint and a civil claim are not substitutes for one another. The complaint is a disciplinary proceeding aimed at sanctioning the offending lawyer and does not produce monetary compensation; the civil claim is intended to compensate the client for their damages. In many cases both proceedings are advisable in parallel, as findings in the disciplinary track can strengthen the civil claim.
This article is general information only and does not constitute legal advice. Each case is examined on its own merits.