Lawyers love making simple things complicated

Meeting with a Costa Rican lawyer can be similar to taking a physics lesson. Sometimes lawyers tend to make any discussions about law or legal matters more complex than they actually are. They also love writing out lengthy descriptions of legal procedures on white or blackboards.

There are times when making things complex is important. A case needs to be outlined in detail so a client can understand the facts. This is especially true for many expats who do not speak Spanish — or are up in their years — to grasp the intricacies of a legal situation in Costa Rica. However, this is not always true in many other matters, for which a simple explanation works better. In fact, most expats almost always prefer a succinct discussion to an extensive one.

The fact is that Costa Rican lawyers do not manage the concept of “simple” very well. They always feel the need to dive deeply in all subjects. Although it may seem as a complaint, the latter is not a criticism, just probably a comment about an inherent part of tico culture. You can find it in the most basic of interactions: the intricate ritual of greetings. It is normal for Costa Ricans to go through a long greeting when they run into an acquaintance, asking about everyone in the family and recent life events. In many cases, they feel slighted when the other party is in a rush and cannot engage in a conversation, which also happens when speaking on the phone. Most expats, on the other hand, like to get down to business. They like the “Hello, how are you,” what’s-the-bottom-line type of conversations.

It also seems that the reason Costa Rican lawyers give complicated explanations about simple procedures stems from the need to justify their fees. If they make a legal procedure sound too simple, then it carries the assumption that it is not very valuable, and thus they cannot charge very much for it. A complex matter justifies a higher price.

Attorney and notary fees in Costa Rica are based on a tabla,(fixed-rate table). The table is created by the Local Bar Association called Colegio de Abogados.

Some 10 years ago, a person filed a constitutional case against the establishment of fees. They stated, among other things, that it was a quick fix that attempted against free competitiveness. During the time the Constitutional Court was studying the case, they suspended the use of the fee table. In the end, as it was expected, justice found that the fee table was legal and its use was reinstated.

In 2005, Executive Decree 32493 ended any further discussion over the matter by ratifying Article 1, Section b of Law 6595, which stated that the Colegio de Abogados is the entity responsible for setting all attorney and notary fees and sending them to the Poder Ejecutivo (the government’s Executive Branch) for approval.

It does not take much to figure out that almost everyone involved in setting the fee structure for attorneys and notaries holds at least one of those titles. In other words, they are the foxes setting up the rules for the hen house.

This fee table is more a set of guidelines than a strict pricing list. However, law professionals adhere to it loyally when it is convenient for them, as in the cases of simple procedures that take no time at all and should cost much less than what the table states. When complex matters are at hand, they will unquestionably disregard the table’s amount and will justify a higher price with a thorough explanation.

Unlike Costa Rica, in the United States many legal matters can be solved without the participation of an attorney or notary. Two typical examples are the transferring of deeds for acquiring vehicles or property. In most states, transferring ownership of a vehicle is as easy as signing the back of a title and getting the signature notarized. This is unheard of in Costa Rica: The work of a notary or attorney is always needed to transfer an asset because it is mandatory by law to record those transactions in their protocol book, to make a testimony of the act, and to submit it to the Registro Nacional.

In addition to transferring assets, most states in the U.S. have approved and standardized forms that people can use in a variety of other legal matters, including divorce. In Costa Rica, on the other hand, there are very few forms a person can use for legal transactions, the most common being the contract for renting an apartment or house. The rule of thumb in this country is that the presence of an attorney or notary is needed not only for cases in court, but also for anything official that needs registration at the Registro Nacional. Besides, the notary fee, which can surmount up to 1.5 percent of the property transfer deal, is a drag on the economy.

In theory, all this mumbo-jumbo and official paperwork exist to curb fraudulent transactions, when in fact it is contributing to an increase in corruption, crime and illegal transfer of assets.

Here are two facts most people do not know regarding legal professionals: attorneys and notaries have rights to an insurance that covers for errors of omission and outright negligence. However, the amount of this insurance is so minuscule that it is virtually worthless in a legal dispute. In addition, the statute of limitations concerning disciplinary actions from the bar association, such as suspending or expelling a legal professional, is valid only after two years of committing a violation, not from the moment the affected party finds out about it.

Here is a bit of good advice for the New Year in terms of working with Costa Rican legal professionals: knowing that the fee table is just a guideline and not an obligatory tool, take advantage of the fact that all fees can be negotiated. Even though it is not very easy to find efficient or honest legal professionals in Costa Rica, take your time to shop around for legal services if pricing is an issue, and feel free to discuss pricing openly with your legal advisor. Make sure they understand that you pay based on results: the carrot in front of the horse goes a long way. Set objectives and pay accordingly. Finally but equally important, if a discussion regarding a legal matter is getting out of hand and turns into a classroom course in calculus, ask politely for the “nitty gritty.”