Austria: Ethics and practicalities

There are no different categories of lawyer. A lawyer (Rechtsanwalt), as a member of the Austrian Federal Bar Association (see below), is entitled to hold himself out as willing and obliged to appear in court on behalf of clients, and to give legal advice and other legal services to clients. The lawyer must promote and protect his client's best interests by all proper and lawful means.

Commercial law firms usually operate as partnerships that may or may not be limited liability. Attorneys can also operate in private practice as sole practitioners or as shareholders of a limited liability company.

No.

An attorney from a state within the EU or European Economic Area (EEA) can provide legal services in Austria:

The foreign lawyer can obtain full standing in Austria (and therefore carry the title of Rechtsanwalt) by passing an exam or practising Austrian law for three years (or a combination of the two).

Otherwise, a foreign lawyer must consult an Austrian attorney when representing a client in proceedings before Austrian courts and authorities.

The list of all practising lawyers in Austria (Österreichisches Rechtsanwaltsverzeichnis) is available at www.rechtsanwaelte.at.

Lawyers must be members of the Austrian Federal Bar Association:

Attorneys must promote and protect their clients' interests (Austrian Code of Professional Responsibility). This requires free and open communication between them and a relationship that ensures confidentiality.

Information disclosed to attorneys by their clients is confidential and cannot be disclosed to a third party, unless the client gives the attorney permission to do so, and in the case of money laundering (see below). The duty to maintain confidentiality continues after legal representation has ended. Attorneys cannot testify in a court or before any public authority about attorney-client communications without the client's consent, unless the attorney is accused of a crime.

Individual attorneys must have indemnity insurance coverage of at least EUR400,000 (about US$500,000) per case, while for law firms, the coverage must be at least EUR2.4 million (about US$3 million).

Attorneys must not act where their own interests conflict with those of the client or where a conflict of interest arises between two or more clients. Lawyers must consider conflicts of interest and clients cannot waive this obligation. However, where the conflict of interest does not interfere with the honesty and integrity of the legal profession (such as giving general legal advice, or drafting and executing shareholder or purchase agreements) one attorney can represent both parties on the same legal matter.

Complaints about lawyers' professional conduct should be made to the Disciplinary Council, which is an independent disciplinary body established by the bar association in each Austrian province.

An attorney can retain client files during pending disciplinary proceedings.

In most cases, the fees provided by law (Rechtsanwaltstarifgesetz) apply, but clients can negotiate fee agreements (involving a lump sum or hourly fee), which do not have to be in writing.

All client funds must be held in a separate bank account that is open to scrutiny by the Austrian Federal Bar Association.

The general provisions of the Criminal Code on money laundering and specific provisions of the Austrian Bar Association Act must be taken into account, in particular with regard to the management of funds, securities or real estate, as well as the establishment of companies.

If it becomes obvious that a client is involved in money laundering activities, the attorney must give the client's name to the Austrian Ministry of the Interior, and inform the client of this immediately.

Notaries are required for certain deeds, such as those for the purchase of real estate or shares in a limited liability company, and a deed of foundation of a company. A notary is not required for lease contracts.

Notary fees are usually a percentage of the transaction value, except where the transaction value cannot be determined, in which case they are fixed.

Notaries form an independent profession in Austria and cannot enter into an association with attorneys or other professionals. They exercise a public office and are nominated by the Ministry of Justice, but they practice their profession in their own name and on their own account.

Yes, the Austrian Chamber of Notaries: