Prountzos & Prountzos LLC have recently managed to establish a decision for our Client before the relevant Committee for the Determination of Legal Fees.
The facts involved a dispute as to legal fees that were to be paid by our Client to another Law Firm for services provided by such Law Firm to our Client in the past. Our client had disputed. before the Committee for the Determination of Legal Fees, the total amount charged as legal fees by the other Law Firm and had engaged Prountzos and Prountzos LLC to represent them before the Committee.
The issue raised by the other Law Firm related to the fact that, for the same matter, a pending civil action before the District Court of Nicosia was ongoing. Such civil action had been filed by the other Law Firm against our Client for the fees due and unpaid by our Client approximately two months after our Client had filed its complaint to the Committee in relation to the fees charged by the other Law Firm. It was the position of the other Law Firm that such parallel proceedings could not continue, and that the only forum with jurisdiction to decide as to this matter would be the District Court of Nicosia.
It was our Client's and Prountzos & Prountzos LLC's position that indeed, there was an issue of procedure pertaining to the simultaneous process before the District Court and the Committee, but that no parallel procedure existed, and that it was within the Committee's jurisdiction to decide on the issue. The procedure before the Committee did not constitute a parallel procedure as there is no hierarchical relationship between the District Court of Nicosia and the Committee for the Determination of Legal Fees and hence, it was within the Committee's jurisdiction to decide on the issue.
The Committee ruled, in its Decision of January 2015 that it has exclusive jurisdiction to decide on the quantification of out - of - court legal fees. It was mentioned that, according to the relevant legislation (CAP.2 art. 24 (ia)): "The fees for lawyers in relation to out - of - court services shall be determined by the Committee..."