Frequently Asked Questions
- What is the success fee?
If the client recovers a debt (in whole or in part) or damages, our fee is an agreed percentage of the recovered amount.
So if the client recovers JPY3,000,000 and the success fee is set at 30% then the client pays us a fee of JPY900,000.
- Does the cap include a consumption tax (VAT or GST)?
Yes. The cap includes the 8% consumption tax in Japan (also called VAT or GST in some other countries).
- Does the cap include disbursements?
No. The client remains responsible for paying disbursements.
- What are disbursements?
Disbursements generally include court fees, courier fees, search fees, translation fees and travel expenses.
- How much are court fees?
The courts publish the Court Fee Schedule (Japanese only).
According to the Schedule, if the client claims for JPY3,000,000 at first instance, JPY20,000 is to be paid as a court fee.
- Can the success fee be recovered from another (unsuccessful) party?
No. Generally, each party must pay its own attorneys’ fees.
- Can interest be charged on late payment?
Yes. A 6% statutory interest rate is allowed to be applied to a claim arising from commercial transactions between businesses or businesses and individuals (Article 514, Commercial Code).
- Commercial claims
5 years from when the right holder can exercise its right (Article 522, Commercial Code).
Commercial claims mean claims that arise out of the commercial activities of one or both parties.
- Contractual claims
10 years from when the right holder can exercise its right (Article 167, Civil Code).
- Tort claims
3 years from when the right holder (1) discovers that he has suffered damage; and (2) knows the identity of the person or entity liable for the damage (Article 724, Civil Code).