4. Funding of Legal Services Flashcards
(36 cards)
What are the requirements under s 57 Solicitors Act which a non-contentious business agreement must comply with in order to be enforceable?
In writing
Signed
Contains all the terms of the agreement
If the relevant provisions have been required with for the creation of a non-contentious business agreement, can the client apply to have the bill assessed by the court?
No - however court may set agreement aside or reduce remuneration if amount is unfair / unreasonable
What are the requirements under ss 59-63 Solicitors Act which a contentious business agreement must comply with in order to be enforceable?
Must state it is a contentious business agreement
Must be in writing
Must be signed by the client
Must contain all the terms
If the relevant provisions have been required with for the creation of a contentious business agreement, can the client apply to court for assessment of costs?
No, unless agreement provides that solicitor it to be remunerated by reference to an hourly rate
When can a solicitor commence a claim to recover costs due?
1 month after delivery of final invoice
When can a client apply to have a bill assessed by the court?
Whenever following delivery of bill - if within the first month, leave of the court is not required and an order to assess the bill will automatically be made
What type of agreement is a “no win, no fee” agreement?
Conditional fee agreement (CFA)
How is the success fee calculated in a CFA?
As a percentage of the usual charging rate
What is the maximum success fee a solicitor can charge under a conditional fee agreement?
No more than 100% of their normal charges
What is the additional cap on general damages which a solicitor can charge under a CFA for PI cases?
25%
If one party has been ordered to pay part of the other party’s legal costs, is any additional sum under a CFA net of this amount or excluding it?
Net of this amount
What are the requirements for the creation of a CFA under s 58(2)(a) Courts and Legal Services Act?
Must be in writing
Must state percentage of fee increase
What is the maximum contingency fee a solicitor can charge under a damages based agreement?
No more than 50% of sum won by client (25% for PI claims)
NOTE that this is the only amount they get paid - so not their fees plus this additional amount
If a client loses a claim and has a CFA or DBA in place, what costs would they still be liable for?
Own disbursements and opponent’s costs (ATE insurance may be taken out to cover these)
If a client wins in a CFA case, can they recover the fee from the opponent?
No
What generally constitutes a good prospect of success for insurers, in order to obtain before-the-event insurance?
More than 50%
What generally constitutes a good prospect of success for insurers, in order to obtain after-the-event insurance?
More than 60%
If a client succeeds in commercial dispute, can they recover from their opponent the costs of any ATE insurance paid?
No
Does a solicitor have to accept a client if they are entitled to legal aid / do they have to accept legal aid as the funding?
No
What is an example of an additional duty placed on the solicitor if they accept a client in receipt of legal aid?
Must inform court and other parties that client has benefit of legal aid
Have additional responsibilities to the Legal Aid Agency
What are the two categories of civil legal aid?
Controlled work
Licensed work
What are the 2 tests for eligibility of civil legal aid?
- Merits of the case
- Financial circumstances
What are the three “forms of civil service” available under Legal Aid?
- Legal help (controlled)
- Help at court (controlled)
- Legal representation (licensed)
In what types of claim is civil legal aid generally not available?
PI, divorce, family disputes regarding children, matters arising out of the carrying on of a business (incl claims brought or defended by sole traders)
