The Legal Practitioners (Remuneration for Business, Legal Services and Representation) Order, 2023 was made by the Legal Practitioners Remuneration Committee (the Committee) and signed into law on May 16, 2023 in exercise of the powers conferred by section15(3) of the Legal Practitioners Act and all other powers enabling in that behalf.
It revoked the Legal Practitioners (Remuneration for Legal Documentation and other Land Matters) Order, 1991.
The Legal Practitioners (Remuneration for Business, Legal Services and Representation) Order, 2023 is therefore a subsidiary legislation. A subsidiary legislation or enactment has been variously judicially described as ‘one that was subsequently made or enacted under and pursuant to the power conferred by the principal legislation or enactment.
It derives its force and efficacy from the principal legislation to which it is therefore secondary and complimentary’.
The Order regulates the remuneration of a legal practitioner for business and services rendered in respect of-
(a) any consultation and legal opinion, as prescribed in Scale 1 set out in the Schedule to the Order;
(b) incorporations, or registration of Companies and Business Names be as prescribed in Scale 2 set out in the Schedule to the Order;
(c) litigation, be as prescribed in Scale 3 set out in the Schedule to the Order;
(d) property transactions, including Mortgages and related transactions be as prescribed in Scale 4 set out in the Schedule to the Order.
Without prejudice to any arrangement reached between a legal practitioner and his client on a percentage-based fee in respect of commercial or other transaction or service not covered in (a)-(d) above, the remuneration of a legal practitioner shall be as prescribed in Scale 5 set out in the Schedule to the Order, provided that no percentage-based fee arrangement shall be lower than the minimum hourly rate prescribed in Scale 5 of the Order.
SCOPE OF RESPONSIBILITIES OF NBA REMUNERATION COMMITTEE.
The Order gives the Remuneration Committee of the Bar (NBA) the following responsibilities:
a. Receiving and considering application for an approval or refusal from a legal practitioner who intends to charge or agree to any remuneration for any business or service which is lower than the amount specified for any of the businesses or services in Scales 1- 5, in the Schedule to the Order.
b. Receiving a report from a person who has knowledge that a legal practitioner has charged or agreed to a remuneration in contravention of the provisions of the Order, investigating the infraction and upon a prima facie case being made, reporting the erring legal practitioner to the Legal Practitioners Disciplinary Committee.
c. Receiving an affidavit from any legal practitioner who in consideration of his/her relationship with his/her client by consanguinity or affinity, charged no fees for legal services provided to the client an affidavit disclosing the facts and circumstances justifying rendering gratuitous service to such client.
The affidavit which must be filed within seven days of receiving the instruction must disclose the facts and circumstances justifying rendering gratuitous service to the client.
As can be seen from the above, the functions of the Remuneration Committee do not extend to fixing or prescribing minimum salary or remuneration to be paid to young lawyers employed in private legal practice or some other form of employment.
IT IS PROFESSIONAL MISCONDUCT FOR A LAWYER TO CHARGE OR AGREE TO COLLECT FEES ON VIOLATION OF THE ORDER.
It is Professional Misconduct to charge Less Than the Fees Prescribed in the Order without Justification
Rule 48 (2) Rules of Professional Conduct for Legal Practitioners, 2023 stipulates that a lawyer shall not enter into agreement for, charge or collect any fee in violation of the Legal Practitioners (Remuneration for Business, Legal Services and Representation) Order, 2023. Order 11 mandates any person who, has knowledge that a legal practitioner has charged or agreed to a remuneration in contravention of the provisions of the Order shall report such legal practitioner to the Remuneration Committee. Rule 74(3) RPC, equally imposes a duty on every lawyer who knows that any lawyer has breached any of the Rules of Professional Conduct to report such lawyer to the appropriate authority for disciplinary action.
The Remuneration Committee shall investigate any complaint reported to it and if a prima facie case is established, report such a legal practitioner to the Legal Practitioners Disciplinary Committee.
Sadly, the existence of the Remuneration Order does not automatically guarantee lawyers’ willingness to ensure the enforcement of the Order. The legal services industry is a highly competitive market, with numerous lawyers competing for clients.
This competition can lead to a situation where lawyers may feel pressure to keep their fees low to attract new clients and reluctant to charge their clients appropriately, for fear of losing the client to another lawyer who may offer lower fees.
This is because clients are always looking for the best value for their money, and they may choose a lawyer who offers lower fees even if the quality of their services is not as high as that of a more expensive lawyer.
In some cases, this may mean that lawyers are not charging their clients enough for their services, which can result in a lower quality of service or a lower level of commitment to the case.
Lawyers tend to be unwilling or refuse to report our colleagues who are found to be contravening the provisions of the Remuneration Order.
This could be due to various reasons such as fear of retribution, lack of awareness about the importance of upholding ethical standards, or simply a reluctance to get involved in reporting a fellow lawyer.
It is important to recognize that any violation of the Remuneration Order can have serious consequences, not only for the involved parties but for the legal profession as a whole. Therefore, all lawyers must be aware of their ethical responsibilities and uphold them without fail.
Amidst whatever economic challenges we may face, there are opportunities for us to enhance our remuneration and ensure that we are fairly compensated for our expertise and efforts. While the challenges of remuneration in the legal profession are significant, they are not insurmountable.
By building on the foundation provided by the Legal Practitioners Remuneration (For Business, Legal Services and Representation) Order, 2023, we can enhance lawyers’ remuneration in Nigeria. By embracing value addition and specialization, and leveraging technology to enhance our efficiency, we can ensure that we are appropriately compensated for the invaluable services we provide to our clients and society as a whole.
