Access to justice: Private funding

Question 1

What are the three types of private funding?

Answer 1

Own resources
Insurance
Conditional fee agreements (CFA’s)

Question 2

What does own resources include?

Answer 2

Loans

Re-mortgaging a home

Question 3

What is a negative of using your own resources?

Answer 3

It can put people into financial difficulties or prevent many people from pursuing a case

Question 4

What do people take out insurance for?

Answer 4

To cover the costs of court, and in anticipation of criminal cases

Question 5

What are the two types of insurance for advice and representation?

Answer 5

Before the event - in anticipation of a case

After the event - to insure against losing a case and having to pay the other sides cost’s as well as damages.

Question 6

What are Conditional fee agreements?

Answer 6

No win no fee arrangements

Question 7

What is the purpose of CFA’s

Answer 7

Alternate way to privately fund a case

Only pay solicitors fees if they win, nothing if they lose

Question 8

What is the method of CFA’s

Answer 8

Agreement that any costs are paid from the compensation received if they win the case.

Question 9

What are some of the advantages of CFA’s 4

Answer 9

Offer further alternative to private funding of a case.
Remove anxiety of huge costs
Widely available
No upfront payment

Question 10

What are some disadvantages of CFA’s 5

Answer 10

Usually charge a higher fee to cover risk
Court costs still may need to be paid
Encourage cherry picking of cases
Lawyers will use dubious tactics to win at all costs
Insurance still needs to be taken out