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Legal Services > 4. Funding of Legal Services > Flashcards

4. Funding of Legal Services Flashcards

1
Q

What are the requirements under s 57 Solicitors Act which a non-contentious business agreement must comply with in order to be enforceable?

A

In writing
Signed
Contains all the terms of the agreement

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2
Q

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?

A

No - however court may set agreement aside or reduce remuneration if amount is unfair / unreasonable

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3
Q

What are the requirements under ss 59-63 Solicitors Act which a contentious business agreement must comply with in order to be enforceable?

A

Must state it is a contentious business agreement
Must be in writing
Must be signed by the client
Must contain all the terms

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4
Q

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?

A

No, unless agreement provides that solicitor it to be remunerated by reference to an hourly rate

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5
Q

When can a solicitor commence a claim to recover costs due?

A

1 month after delivery of final invoice

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6
Q

When can a client apply to have a bill assessed by the court?

A

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

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7
Q

What type of agreement is a “no win, no fee” agreement?

A

Conditional fee agreement (CFA)

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8
Q

How is the success fee calculated in a CFA?

A

As a percentage of the usual charging rate

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9
Q

What is the maximum success fee a solicitor can charge under a conditional fee agreement?

A

No more than 100% of their normal charges

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10
Q

What is the additional cap on general damages which a solicitor can charge under a CFA for PI cases?

A

25%

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11
Q

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?

A

Net of this amount

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12
Q

What are the requirements for the creation of a CFA under s 58(2)(a) Courts and Legal Services Act?

A

Must be in writing
Must state percentage of fee increase

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13
Q

What is the maximum contingency fee a solicitor can charge under a damages based agreement?

A

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

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14
Q

If a client loses a claim and has a CFA or DBA in place, what costs would they still be liable for?

A

Own disbursements and opponent’s costs (ATE insurance may be taken out to cover these)

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15
Q

If a client wins in a CFA case, can they recover the fee from the opponent?

A

No

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16
Q

What generally constitutes a good prospect of success for insurers, in order to obtain before-the-event insurance?

A

More than 50%

17
Q

What generally constitutes a good prospect of success for insurers, in order to obtain after-the-event insurance?

A

More than 60%

18
Q

If a client succeeds in commercial dispute, can they recover from their opponent the costs of any ATE insurance paid?

A

No

19
Q

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?

A

No

20
Q

What is an example of an additional duty placed on the solicitor if they accept a client in receipt of legal aid?

A

Must inform court and other parties that client has benefit of legal aid

Have additional responsibilities to the Legal Aid Agency

21
Q

What are the two categories of civil legal aid?

A

Controlled work
Licensed work

22
Q

What are the 2 tests for eligibility of civil legal aid?

A
  1. Merits of the case
  2. Financial circumstances
23
Q

What are the three “forms of civil service” available under Legal Aid?

A
  1. Legal help (controlled)
  2. Help at court (controlled)
  3. Legal representation (licensed)
24
Q

In what types of claim is civil legal aid generally not available?

A

PI, divorce, family disputes regarding children, matters arising out of the carrying on of a business (incl claims brought or defended by sole traders)

25
Q

What are the two tests for Legal Aid?

A

Merits test
Means test

26
Q

What is the relevant merits test for legal help and help at court?

A

The “sufficient benefit test” - only available if there is a sufficient benefit to the client

27
Q

What is the relevant merits test for legal representation?

A

Dependant on client’s prospect of success - will not be granted if those prospects are assessed at less than 50%

28
Q

What is the capital limit for civil legal aid?

A

£8,000

(£3,000 for immigration cases)

29
Q

In what event would a client automatically qualify for civil legal aid on basis of income?

A

If they are in receipt of a welfare benefit (although capital must still be assessed)

30
Q

What is the threshold amount for qualification for civil legal aid?

A

If client’s gross monthly income exceeds £2,657 the client does not qualify

31
Q

What is the threshold amount for qualification for civil legal aid for licensed work?

A

If the client’s monthly disposable income is above £315 or their capital above £3,000 legal aid will be offered to the client on the basis that they make a contribution towards their legal fees

32
Q

Will a spouse / civil partners income be taken into consideration for the means test for legal aid?

A

Yes, unless can be shown that they have a contrary interest in the proceedings

33
Q

What is the reasonable client test for civil legal aid?

A

Legal aid will only be granted if a reasonable privately paying client would proceed with the case

34
Q

When is the interests of justice test automatically satisfied in criminal legal aid?

A

When it is a Crown Court trial

35
Q

What is the adjusted income figure for criminal legal aid means test?

A

£12,475

Income NOT capital

36
Q

Are third party funding agreements permitted?

A

Yes - they will be deemed valid on the facts, i.e. valid unless there is evidence of impropriety or wrongdoing

Legal Services (4 decks)

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