FDP Presents “Legal Costs Amendment Act 2025”
Berlin, December 19, 2024 (hib) – The Free Democratic Party (FDP) has introduced the “Legal Costs Amendment Act 2025” in the German Bundestag. The bill aims to modernize and simplify the legal costs system, bringing it in line with the needs of the 21st century.
Key Changes
The proposed changes include:
- Introduction of digital legal proceedings: Lawyers and courts will be required to accept and process digital documents, including pleadings, judgments, and evidence. This will streamline the legal process and reduce costs for both parties.
- Increased transparency and predictability of legal costs: The bill introduces new rules to make it easier for individuals and businesses to estimate the potential legal costs involved in a case. This will help prevent financial surprises and ensure fair access to justice for all.
- Simplification of the fee structure: The current complex fee structure will be simplified, making it easier for lawyers and clients to calculate costs. This will also reduce administrative burdens and save time.
- Promotion of mediation and arbitration: The bill aims to encourage alternative dispute resolution mechanisms, such as mediation and arbitration, as these are often faster and more cost-effective than traditional court proceedings.
Benefits
The FDP believes that the Legal Costs Amendment Act 2025 will bring numerous benefits to the German legal system, including:
- Reduced costs for litigants: The changes will make legal proceedings more affordable for individuals and businesses, improving access to justice.
- Increased efficiency of the legal process: Digitalization and other proposed measures will streamline legal proceedings, reducing the time and resources required to resolve disputes.
- Improved predictability and certainty: The new transparency and predictability rules will provide greater certainty for litigants when it comes to legal costs, eliminating the risk of unexpected financial burdens.
- Promotion of alternative dispute resolution: The bill’s emphasis on mediation and arbitration will encourage parties to pursue faster and more cost-effective alternatives to traditional court proceedings.
Next Steps
The Legal Costs Amendment Act 2025 will now be debated in the Bundestag. If passed, the bill will come into effect on January 1, 2026. The FDP believes that these changes will modernize the German legal system and make it more efficient, accessible, and affordable for all.
FDP legt “Kostenrechtsänderungsgesetz 2025” vor
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