Wrapping Up Your Japanese Legal Matter: What to Expect from Your Lawyer After the Case Concludes?

Japanese Attorney at Law - Bengoshi L.L.

• 8 min read

The conclusion of a legal case in Japan—whether through a court judgment, a settlement, or another form of resolution—marks a significant transition. However, for your Japanese legal counsel (bengoshi - 弁護士), the work doesn't abruptly end with the final outcome. A series of important post-case duties and administrative procedures must be diligently handled to ensure a professional wrap-up, protect your company's ongoing interests, and formally conclude the attorney-client engagement.

Understanding these post-case responsibilities is crucial for businesses to ensure all loose ends are tied, finances are settled transparently, and important documents are appropriately managed. This article outlines what you can typically expect from your Japanese lawyer after your legal matter in Japan reaches its formal conclusion.

While the active phase of legal representation concerning the specific dispute may have ended, the attorney-client relationship, along with certain core duties, persists. Japanese attorneys are bound by their initial retainer agreement (inin keiyaku - 委任契約) and, significantly, by the Basic Rules of Bengoshi Duties (弁護士職務基本規程 - BENGOSHI Shokumu Kihon Kitei), which outline ongoing ethical and professional obligations.

  1. Duty to Report and Explain the Outcome (Basic Rules of Bengoshi Duties, Art. 44):
    This is a fundamental post-case obligation. Your bengoshi is required not merely to inform you of the result (e.g., the content of a judgment or settlement) but to explain its implications clearly and accurately. This includes:
    • A thorough breakdown of the final outcome.
    • An explanation of any further actions that can or should be taken in relation to that outcome (e.g., steps for enforcement, lodging an appeal if applicable and desired, or understanding the finality of a settlement).
    • Providing necessary legal advice connected to the conclusion of the matter.
      This duty to report and explain applies even if the attorney's engagement was terminated by dismissal or resignation before the absolute end of the legal process.
  2. Continuing Duty of Confidentiality (Basic Rules of Bengoshi Duties, Art. 23):
    The strict duty of confidentiality that your bengoshi owes your company regarding all information learned during the course of the representation continues indefinitely, even long after the case has concluded and the formal retainer has ended. This is a cornerstone of the attorney-client privilege in Japan.

Key Post-Case Services and Procedures

Once the substantive legal work on your case is finished, expect your Japanese counsel to undertake several important administrative and procedural steps:

A. Comprehensive Explanation of the Resolution (Shori Kekka no Setsumei - 処理結果の説明):
Beyond the immediate notification of a judgment or settlement, your bengoshi should provide a comprehensive debrief. This typically involves:

  • A detailed discussion of the final terms of a settlement or the full reasoning behind a court judgment.
  • An analysis of how the outcome aligns with the initial case objectives and any revised strategies during the litigation.
  • A clear explanation of any ongoing obligations or rights your company may have as a result of the resolution.
  • Addressing any final questions or concerns your company may have regarding the case and its conclusion.

B. Return of Client Documents and Original Evidentiary Materials (Shorui-tō no Henkan - 書類等の返還; Basic Rules, Art. 45):
Your company is entitled to the return of its original documents and any original evidence provided to the attorney during the case.

  • Prompt Return: Attorneys are obligated to return these materials to the client without undue delay after the matter is concluded (and often after ensuring their own file copies are complete).
  • Method of Return: For important or irreplaceable original documents, return via registered mail, secure courier, or in-person handover is advisable.
  • Receipt of Returned Documents: It is good practice for the attorney to prepare a list of documents being returned and to obtain a signed receipt from your company confirming their return. This helps prevent future misunderstandings.
  • What is Typically Returned:
    • Original contracts, correspondence, corporate records, and any other physical evidence provided by your company.
    • The original, official copy of court judgments (hanketsu-sho - 判決書), settlement records (wakai chōsho - 和解調書), or private settlement agreements (jidan-sho - 示談書) that belong to your company.
  • Attorney's Work Product and Obtained Records:
    • Documents created by the attorney primarily for their own use (e.g., internal research memoranda, internal drafts not filed with the court) are generally considered the attorney's property and are not typically "returned," though summaries or key findings would have been communicated.
    • Records obtained by the attorney from third parties through legal processes (e.g., court records they copied, responses to bar association inquiries), even if your company paid the associated disbursements, are often considered part of the attorney's case file. The client has paid for the information derived from these for the purpose of their case, not necessarily for ownership of the physical documents obtained by their counsel. However, copies of key items may be provided to the client for their records.
  • Withholding Documents for Unpaid Fees: Some retainer agreements might contain clauses allowing an attorney to retain client documents if fees are outstanding. However, the ethical propriety of exercising such a lien, especially concerning essential client documents, can be questionable depending on the specific circumstances (e.g., the amount of unpaid fees versus the importance of the documents to the client) and should be handled with extreme caution by counsel.

C. Final Settlement of Client Funds, Expense Advances, and Disbursements (Azukarikin/Tatekaekin-tō no Seisan - 預り金・立替金等の清算; Basic Rules, Art. 45):
Transparency and accuracy in financial dealings are paramount.

  • Client Trust Accounts (Azukarikin Kōza - 預り金口座): Japanese attorneys are ethically and often legally required to maintain separate bank accounts for client funds (e.g., advances for expenses, settlement proceeds received on behalf of the client) distinct from their firm's operational accounts.
  • Detailed Statement of Account: Upon conclusion of the matter, your bengoshi must provide a clear, detailed, and itemized statement of account. This should show all client funds received (e.g., expense advances - yobi-kin - 預り金, or settlement/judgment monies collected), all disbursements made on behalf of your company (e.g., court filing fees, translation costs, expert fees, travel expenses – with dates, specific items, and amounts), and the resulting balance.
  • Offsetting Against Final Fees: It is common practice, usually with the client's prior agreement (often stipulated in the retainer agreement), for the attorney to deduct their final outstanding fees (especially success fees) from any client funds they are holding (e.g., settlement proceeds) before remitting the net balance.
  • Prompt Remittance of Net Proceeds: Any funds remaining that belong to your company must be promptly paid out.
  • Representing Multiple Clients: If the attorney represented multiple clients jointly in a matter (e.g., several plaintiffs or defendants), particular care must be taken in correctly allocating and distributing any received funds according to their respective entitlements and any prior agreements between the co-clients.

D. Finalization and Claiming of Attorney's Fees (Hōshū no Seikyū - 報酬の請求):

  • Basis in the Retainer Agreement: The final claim for attorney's fees must be strictly in accordance with the terms previously agreed upon in the written retainer agreement (inin keiyaku). This includes any retainer fees (chakushukin - 着手金), success fees (hōshūkin - 報酬金), time charges, or other fee components.
  • Transparency in Calculation: Especially for success fees contingent on the outcome or "economic benefit" obtained, the attorney should clearly explain how the fee was calculated based on the final result.
  • Communication Before Invoicing: While not a strict requirement, many attorneys will discuss the final fee calculation with the client and perhaps send a draft fee proposal before issuing a formal invoice. This fosters transparency and helps maintain a positive relationship, which can be important for potential future engagements.
  • Prescription Period for Attorney Fee Claims: Following the significant reforms to the Japanese Civil Code effective April 1, 2020, the old specific short prescription periods for professional fees (which was 2 years for attorneys from the end of the case under former Civil Code Art. 172) were abolished. Now, attorney fee claims are generally subject to the standard prescription rules under the new Civil Code Art. 166 (typically, 5 years from the time the creditor becomes aware that they can exercise the right, or 10 years from the time the right can be exercised).
  • Fee Disputes: In the event of a disagreement over fees, attorneys in Japan are ethically encouraged (under Article 26 of the Basic Rules of Bengoshi Duties) to seek resolution through the dispute resolution mechanisms (e.g., fee mediation committees) provided by their local bar association.

E. Case File Record Retention and Disposal (Kiroku no Hokan/Haiki - 記録の保管・廃棄):
Attorneys have professional responsibilities regarding the management of closed case files.

  • Importance of Organized Retention: Case files are typically retained for a certain period after the conclusion of a matter. This is important for several reasons:
    • To respond to any future inquiries from the client regarding the past case.
    • To address any post-resolution issues, related legal matters, or potential claims that might arise later (e.g., concerning the enforcement of a settlement or judgment).
    • For the attorney's own records, professional liability defense, internal training, or knowledge management.
  • Retention Period: There is no single, universally mandated statutory retention period for all civil case files in Japan that applies indefinitely after the abolition of former Civil Code Article 171 (which set a 3-year prescription for certain liabilities concerning received documents). Attorneys and firms usually establish their own internal policies, often retaining files for a significant number of years (e.g., 7-10 years or longer), balancing practical storage costs and potential future needs. Specific rules apply to certain records, such as Client Identification (KYC) records under JFBA rules, which must be kept for 5 years after the conclusion of the relevant transaction or termination of the attorney-client relationship.
  • Storage Methods and Security: Files may be stored as physical paper documents, in digital/electronic format, or a combination. Regardless of the method, attorneys must ensure secure storage to prevent unauthorized access, data loss, information leakage, or physical damage, upholding their continuing duty of confidentiality.
  • Confidential Disposal: When files are eventually due for disposal, the duty of confidentiality remains paramount. All paper documents containing client information must be securely destroyed, typically by shredding. For large volumes, professional confidential disposal services are often employed. Extreme care is also necessary when decommissioning old computer hard drives or other digital storage media that may contain sensitive client data, ensuring complete data erasure.

F. Other Concluding Administrative Matters:
Depending on the nature of the case, there might be other concluding tasks, such as:

  • Retrieval of Security Deposits: If, for instance, your company (as plaintiff) posted a security deposit with the court for a provisional remedy, or (as defendant) for a stay of execution pending appeal, your attorney will handle the necessary procedures with the Legal Affairs Bureau (Hōmukyoku - 法務局) or the court to have these funds retrieved and returned (less any applicable deductions or claims against the deposit).

The Importance of "Aftercare" and Maintaining the Client Relationship

While the formal legal mandate may have concluded, many Japanese attorneys value the long-term relationship with their clients. Good "aftercare" can be an important aspect of this.

  • This might involve the attorney checking in with the client periodically if appropriate to the nature of the past engagement or the client's ongoing business.
  • Being available for brief, informal follow-up questions (within reasonable limits, and understanding that new substantive advice would likely require a new engagement).
  • Potentially providing clients with general updates on significant legal developments that might be relevant to their industry or past legal issues.
    Such continued engagement, where appropriate, not only demonstrates ongoing professionalism and client care but can also lead to future legal work and strengthen the overall business relationship.

The formal conclusion of a legal matter in Japan triggers a series of important administrative, financial, and documentary wrap-up tasks that must be diligently performed by your Japanese bengoshi. These post-case responsibilities are guided by legal requirements, ethical obligations, and good professional practice. For businesses, ensuring clear communication with counsel throughout this phase, understanding the processes for the return of documents, the final settlement of accounts and fees, and the management of case records is key to a smooth and professional conclusion of the attorney-client engagement. This diligent wrap-up safeguards your company’s interests, ensures transparency, and helps maintain a positive and potentially ongoing relationship with your Japanese legal advisors even after the primary legal work is done.