Chapter 8: Funding options for legal services Flashcards
What is the overarching professional conduct obligation (payment)?
Provide accurate information on costs at time of engagement and as the matter progresses. Give overall estimated cost.
What happens to a solicitor who deliberately overcharges?
break professional conducts obligations.
When can a client be charged more than the agreed fixed fee?
work more expensive than anticipated and the client agrees to pay more
what is a conditional fee agreement?
Fee only payable in specified circumstances.
win case = pay (solicitor fees plus a success fee)
Loses the case - do not pay their solicitor fees but may be liable to pay other party costs/ disbursements. (Sometimes pay reduced fee).
what is a success fee?
Charge payable under a CFA. Shown as a % of solicitors hourly rate. CANNOT exceed 100% of the solicitor’s chargeout rate.
which party pays the success fee?
Only the client can pay the success fee
when can a CFA not be used?
Family proceedings
What does a CFA not cover/ not cover
Only covers the clients own solicitor legal fees
(not disbursements/ counsel etc).
how do you calculate the success fee?
Workout success fee amount = % in £ of solitons hourly rate
Hours worked divided by hourly rate
Then multiply this by the success fee amount
Answer is the success fee to be paid by the client
What can a success fee not exceed
100& of solicitor changeout rate
when does a solicitor receive payment in a DBA?
Client is successful
Client obtains financial benefit e.g damages.
What might the losing party still have to pay?
other party costs/ disbursements.
Even if a DBA claim is a success what might the client still have to pay?
shortfall
how is shortfall calculated?
Find the DBA % of the damages rewarded.
This is what the solicitor is owed
Look at the amount the other party is ordered to pay
Deduct the amount the losing party must pay from the solicitor’s DBA amount
The answer = shortfall the winning client pays to their solicitor
What are the limitations on a DBA%
capped at 50% of damages award - incl counsel fees
PI - 25% exc damages for future financial loss
employment - 35%
what is BTE?
Before the event insurance
what is ATE?
After the event insurance
when can ATE not apply?
family proceedings
what are examples of controlled work?
legal help/ help at court
what is licensed work?
legal representation
when does an application for civil legal aid need to be made to the LAA?
for licensed work
Who is civil legal aid available to?
Family law - victim of domestic abuse
Care proceedings
Client faces homelessness
Subject to discrimination
Immigration cases
Refusal would result in breach of HR
What is the merits test for civil legal aid?
Legal help/ help at court = sufficient benefit test
Legal representation = depending on the prospect of success (general rule less than 50% chance funding refused)
what are the key factors in the civil legal aid merit test?
Money: consider damages recovered vs cost of the case
No money involved: consider if benefits gained outweigh costs - would a reasonable client pursue the case if they were privately funding the matter?
The LAA will refuse funding if they believe there is an alternative source available.
what is the means test for civil legal aid?
Disposable capital and income must be below £8,000 per year (£3,000 for immigration cases).
a) Monthly gross income exceeds £2,657 will NOT qualify (before tax).
b) Less than £2,657 will assess disposable income, deduct living costs. Less than £733 can qualify but might still need to contribute.
when is civil legal aid automatically qualified?
Welfare benefit = automatically qualify for legal aid:
universal credit
Income support
Income- based job seeker’s allowance
Income- related employment and support allowance
Pension credit
what does criminal legal aid cover?
Provision of free legal advice:
Anyone attending a police station (arrested or voluntary).
Solicitor fixed fee
Duty solicitors - attend magistrates.
what is the interests of justice test for criminal legal aid?
Factors serious / complex?
Likely to lose liberty/ lively hood or suffer serious reputational damage?
Involve significant/ complex questions of law?
Could individual understand proceedings/ present own case?
Interviewing/ cross examination of witnesses?
Interests of others for defendant representation?
Can D show ‘some other reason’ that it is in the interest of justice for legal aid?
when does the interests of justice test automatically apply?
Crown Court cases
What is the initial means test for criminal legal aid?
step 1 of the means test
adjusted income:
£12,475 or less = eligible
Between £12,475 and £22,325 = subject to full means test.
£22,325 or above = magistrates NOT eligible OR Crown Court need full means test
what is the full means test for criminal legal aid?
Deducts essential expenses form gross annual income
Figure shows disposable income
when does a full means test apply?
adjusted income is between £12,475 and £22,325 OR above £22,325 for crown court case
