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    General Tariff - May 2020

    Uploaded by

    Franco Durant

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    General Tariff - May 2020

    Uploaded by

    Franco Durant
    2 views6 pages

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    GENERAL TARIFF - MAY 2020

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

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    2 views6 pages

    General Tariff - May 2020

    Uploaded by

    Franco Durant

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    Page 1 of 6

    5TH FLOOR, SOUTH WING, LAW SOCIETY HOUSE, KWAME NKRUMAH AVENUE, HARARE TEL. 0242 779207-9

    GENERAL TARIFF OF FEES FOR LEGAL

    PRACTITIONERS WITH EFFECT FROM MAY 2020

    PART 1: EXPLANATORY MEMORANDUM AND DIRECTIONS

    Note 1 Legal practitioners are professionally and legally obliged to charge fees
    for legal work which are fair and reasonable in all the circumstances. In
    order to assist the profession and the public in this regard and to seek a
    degree of uniformity and consistency, this tariff is recommended by the
    Council of the Law Society of Zimbabwe for application to all legal work
    undertaken by legal practitioners, save where some other tariff is applied
    by law or where the client has agreed to some other rate or basis of
    charging. Thus party and party fees in civil litigation, conveyancing fees,
    collection commissions and deceased estate administration fees are not
    covered by this tariff whereas legal practitioner and client fees in civil
    litigation and fees for criminal and general non-litigious work are
    covered.

    Note 2 The recommended ranges are to be regarded as the ordinary fees


    chargeable for work of the type described. If one or more of the
    following five special criteria are present then the rate customarily
    selected by the legal practitioner within his or her experience category
    may be increased by premiums where appropriate, in accordance with
    Notes 5 and 6. The criteria which would place a matter outside the
    ordinary and justify a higher rate occur where;

    2.1 the matter is complex or the questions raised are difficult or


    novel;
    2.2 specialised knowledge, skill and/or responsibility are required
    the legal practitioner;
    2.3 the place where or the circumstances in which the business is
    transacted are unusual or difficult;
    2.4 the amount or value of the money or property involved is
    particularly high; and/or
    2.5 the matter is of particular importance to the client.

    Note 3/…
    Page 2 of 6

    Note 3 It should be noted that Bylaw 68 (1) requires that a legal practitioner’s
    fees in non-litigious matters should be fair and reasonable in the
    circumstances, listing the points set out in Note 2 above (amongst others)
    and adding a further criterion, namely “any tariff of recommended
    charges issued by the Council”. Legal practitioners who exceed this
    recommended tariff do so at their peril. If they feel the tariff is
    inadequate or inequitable or likely to prejudice a good relationship with a
    client they are welcome to approach the Council for guidance.

    Note 4 Where a legal practitioner intends to charge fees on a basis which is


    different from that which is set out in this recommended tariff, it is
    essential that the client be informed in advance and that the client’s prior
    agreement to this should be obtained. It is preferable to record such
    agreement in writing. The Council will regard any rate which is higher
    than the upper margin of the recommended range as materially different.

    Note 5 The ranges of hourly fees recommended in this tariff are designed to take
    into account both the varying levels of experience of practitioners and
    their varying costs of practice. Legal practitioners are entitled to charge
    rates which are at the lower or upper margins or anywhere in between
    these margins. Thus a simple non-commercial matter handled by a
    newly-registered practitioner paying a relatively low rent in a small town
    is unlikely to justify any more than a rate at the lower margin of his or
    her applicable range while a complicated international commercial
    transaction handled by a senior partner of a large city firm who has been
    in practice for 20 years or more is likely to merit a fee charged at a rate at
    the upper margin of his or her applicable range (before the premium
    resulting from any special criteria is added).

    Note 6 The maximum premiums which may be added to a legal practitioner’s


    customary rate for the type of work involved as a result of the existence of
    special criteria are as follows:

    Number of years’ Premium over and


    experience as a above customary rate
    registered legal practitioner
    0 years to 4 years 11 months 50 %
    5 years to 9 years 11 months 75 %
    10 years to 19 years 11 months 100 %
    20 years or more 125%
    30 years or more 150%
    40 years or more 175%

    Note 7/…
    -3-
    Page 3 of 6

    Note 7 Where a legal practitioner performs work in an area where another


    professional person would charge a percentage fee, the legal practitioner
    shall be entitled to charge a percentage fee or a flat fee if the client’s prior
    agreement is obtained. Again, it is preferable to record such agreement
    in writing.

    Note 8 Where a legal practitioner performs work on instructions emanating


    from outside Zimbabwe, he or she shall be entitled both to charge a fee
    similar to that which would be charged by a legal practitioner of
    comparable experience and ability in the country from which the work
    emanates and to charge such fee in the currency of that country, provided
    always that the provisions of the exchange control and any other
    applicable regulations are observed.

    Note 9 The recommended hourly ranges reflected in part II (which covers both
    general professional services and standard fees for basic work) will be
    reviewed periodically. The rates have been set in RTGS. Where fees are
    charged in another currency, the 2011 LSZ General Tariff shall apply
    and the market exchange rate for the US dollar shall be used.

    Note 10 As illustrations of an ordinary fee and a fee to which a premium is added,


    a legal practitioner of 17 years’ experience who prepares an Agreement
    in May 2020 could legitimately charge the following hourly rates:

    10.1 If the Agreement is not particularly complex and the value of


    the transaction is not particularly high, a fee of RTGS 8 000.00 per
    hour.

    10.2 If the Agreement is complex and the value of the transaction is


    very considerable, as a result of which the maximum premium
    of 50% for special criteria can legitimately be charged, a rate of
    RTGS 10 125 .00 per hour, calculated as follows:

    Upper margin of hourly range for May 2020 RTGS 13 500.00


    Add 50% premium RTGS 6 750.00
    RTGS 20 250.00

    10.3 If the economic exigencies would render the fee to be undervalued,


    the premium can be applied.

    Note 11 Although hourly rates are recommended, a legal practitioner is expected


    to divide these up in such smaller units of time spent as are convenient to
    his or her practice and the type of work concerned. No unit of more than
    5 or 6 minutes is likely to be accepted as being reasonable.

    Note 12 It is most desirable to maintain file notes of all attendances which show
    the time spent and the work performed. When an account is drawn the
    Page 4 of 6

    total number of units of time spent can be multiplied by the requisite


    fraction of the relevant hourly rate in order to establish the basic fee.
    This can then be adjusted upward (if any of the aforesaid special criteria
    is present) or downward (if it is felt, for good reason, that the result is
    inequitable).

    Note 13 Where an experienced legal practitioner carries out work of a


    comparatively simple nature (for example, either at the specific request of
    the client or because it is not possible or convenient to refer the matter to
    a more junior person) then it is expected that the fee charged will be
    based on a lower rate than that which is normally charged by such senior
    practitioner, bearing in mind the need for the overall fee to be fair and
    reasonable in all the circumstances.

    Note 14 Unless agreed otherwise with the client, a fee for the investment and
    administration of trust funds shall not exceed 5% of the gross interest
    earned.

    Note 15 The fees recommended by the Council do not take value added tax into
    account: it should be added.

    Note 16 In addition to fees, the client may also be charged for;

    16.1 photocopies, machine-duplicated copies and computer-printed


    copies, at the rate of RTGS 25.00 per page;
    16.2 faxes sent, at a rate equivalent to the cost of the telephone call
    involved plus the photocopying cost of the number of pages;
    16.3 trunk and mobile telephone calls made, at cost;
    16.4 revenue stamps, Deputy Sheriff’s and Messenger of Court’s
    fees and all other disbursements, at cost;
    16.5 collection commission, where applicable, at the prescribed rate.

    Note 17 A standard disbursement entry in an account for “stationery, postage and


    petties” is permissible, provided that it is appropriate (which would not
    be the case where little or nothing was actually spent by the legal
    practitioner on the items in question) and further provided that it shall
    not exceed 2% of the total fee charged in the account.

    PART II/: FEES

    ITEM 1: GENERAL PROFESSIONAL SERVICES

    Time reasonably and actually spent in personal attendance by a legal practitioner in


    performing his or her mandate, including taking instructions, telephone calls,
    attendances in court, offices of record and the like, research, preparation, drafting,
    dictation and perusals of letters and documents:
    Page 5 of 6

    YEARS’ BASIC HOURLY RANGES


    EXPERIENCE

    30 years and over RTGS 10 000.00 –RTGS 17 500.00


    20-29 years 11 months RTGS 8 750.00 – RTGS 15 500.00
    15-19 years 11 months RTGS 7 500.00 – RTGS 13 500.00
    10-14 years 11 months RTGS 6 250. 00 –RTGS 10 500.00
    5-9 years 11 months RTGS 4 250. 00 –RTGS 7 500.00
    2-4 years 11 months RTGS 3 500 .00 –RTGS 6 000.00
    0-1 years 11 months RTGS 2 500.00 – RTGS 3 750.00
    Unregistered Law Graduate whose name is
    recorded by Law Society RTGS 1 500.00 – RTGS 3 000.00

    ITEM 2: OPTIONAL STANDARD FEES FOR BASIC WORK

    A legal practitioner shall be entitled to charge the following standard fees instead of
    calculating his or her fees on the above basis, where basic work is involved. If the work
    is not basic, Notes 1 to 10 apply.

    2.1 SALE AGREEMENT


    residential or farm RTGS 25 000 or 1% of the selling-price,
    whichever is the greater
    business or shares RTGS 40 000 or 2% of the selling-price,
    whichever is the greater

    LEASE/…

    LEASE AGREEMENT
    residential or farm RTGS 15 000.00 or one month’s rent,
    whichever is greater.
    business RTGS 30 000.00 or one month’s rent,
    whichever is the greater.
    commercial transaction 2% of the value of the transaction

    2.3 UNCONTESTED DIVORCE


    (with or without consent paper, with minimal negotiations and including
    appearance in Court, where necessary)
    for Plaintiff RTGS 50 000.00
    for Defendant RTGS 30 000.00

    2.4 WILL
    simple (e.g., all to spouse, one or two bequests) RTGS 16 000.00
    more complex, (e.g. multiple heirs and/or bequests,
    trust established etc)................ charge applicable rate
    Page 6 of 6

    2.5 COMPANY FORMATION


    (with share certificates and initial Companies Act forms)
    with a full set of Articles RTGS 25 000.00
    where Articles substantially
    incorporate Table A, whether
    or not with modifications RTGS 17 500.00

    2.6 NOTARIAL WORK


    simple ante- and post-nuptial
    contract RTGS 15 000.00
    change of name RTGS 12 500.00
    simple authentication RTGS 5 000.00
    notarial cession of
    book debts where this is not
    part of notarial bond 2% of the value involved
    bond charge conveyancing tariff

    2.7 LIQUOR LICENCE


    initial application RTGS 22 500.00
    renewals to Secretary RTGS 15 000.00
    all other application RTGS 12 500.00

    2.8 SHOP LICENCE RTGS 12 500.00

    2.9 GENERAL POWER OF ATTORNEY RTGS 3 750.00

    2.10 INSOLVENCY/ LIQUIDATION CLAIM 2. 5% of the value claimed

    ISSUED BY THE LAW SOCIETY OF ZIMBABWE, MAY 2020


    _________________________________________________________________

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