Law firm must repay fees

A law firm brought an action for payment of outstanding fees against a former client. The client demanded a refund of too much paid fees. The Supreme Court took as its starting point that issues related to legal fees should be reviewed according to the same criteria, regardless of whether the review takes place in separate cases involving fees, in the extension of cases dealt with under section 3-8 of the Dispute Act or in cases concerning the validity of the Disciplinary Committee's fee decision. The Supreme Court also found, like the previous instances, that the implemented industry standard for calculation of fees, based on section 3.3.1 of the Code of Conduct for Lawyers, had to be considered a part of the assignment agreement between the lawyer and the client. The Court of Appeal's reduction of the calculated fee, which was not subject to the Supreme Court's review, was thus based on correct application of the law. The reduction meant that the client had paid too much in legal fees. It was clear that the conditions for claiming a refund had been met, regardless of whether the refund obligation was rooted in the condictio indebiti doctrine or in a principle of recovery of unjust enrichment under a contract. The law firm's appeal against the Court of Appeal's judgment was dismissed.

Read the whole judgment (Norwegian only)

Areas of law: Contract law. Code of Conduct for Lawyers, section 3.3.1

Justices: Øie, Falkanger, Noer, Arntzen, Sæther