Israeli Court Cancels Lifetime Legal Fee Agreement Allowing Client to Fire Lawyer

An Israeli court has invalidated a "non-revocable" legal fee agreement that bound a family and their heirs to a former lawyer, ruling that clients retain the right to terminate legal representation. The ruling by Judge Ronit Ofir, Deputy President of the Bat Yam Magistrate's Court, criticized the lawyer for describing the agreement as a "lifetime partnership." She emphasized that a legal fee contract is a personal service agreement based on trust and client consent, which cannot be restricted by binding terms.

The dispute arose after a family hired the lawyer in 2015 to obtain building permits and advance construction on a 2,000-square-meter property in Bnei Brak. The family claimed the agreement was "draconian," preventing them from ending the representation and binding their heirs. After several years without progress, the family terminated the lawyer's services citing loss of trust. The lawyer argued the agreement and powers of attorney were irrevocable.

Judge Ofir rejected this, stating such clauses violate public policy and the lawyer's duty of loyalty and fairness. She affirmed that the client-lawyer relationship is based on special trust, allowing clients to dismiss their lawyers while ensuring fair payment for work done. The court found no evidence the family acted in bad faith or obstructed the lawyer's work and ruled the representation was not negligent.

The court annulled the fee agreement and powers of attorney. In a counterclaim, one family member was ordered to pay the lawyer approximately 13,800 shekels for separate representation. The lawyer was also ordered to pay the family 50,000 shekels in legal costs and fees. The family's attorneys described the ruling as thorough, while the former lawyer said he accepted the verdict but intends to appeal.