Client Care And Costs Flashcards
What level of service is expected from a solcitior?
Competent and deliver in timely manner. Must maintain competence to carry out role and keep professional knowledge up to date
Solicitor must consider and take in account the clients attributes, needs and circumstnaces.
What responsibilities does the solicitor have to the client?
Keep client informed of progress
Seek clients instructions where required
Solicitor must not issue proceedings without authority of insurer
What information on costs must be given?
Solicitor is obliged to provide clients with the BEST POSSIBLE INFORMATION about how their matter will be proceed - at time of engagement and when appropriate as matter progresses.
If a precise cost figure is not possible, what must the solicitor explain?
Explain WHY the precise figure is not possible, and agree either:
A ceiling figure, in which the solicitors costs cannot go above,
Or a review date, where the parties revisit the costs position.
What are the cost issues in litigation?
There is the risk of having to pay someone else’s legal fees. In litigation, the client may be ordered to pay some of the costs of the winning party.
What is needed in a client care letter ?
Information which must be passed to the client at the start of the matter.
Rules and regulations
Costs
Complaints procedure.
What is the consumers contracts regulations 2013?
Solicitors need to ensure that they comply with the consumers contracts regulations.
Distinguishes between on-premise and off-premise contracts.
Specify that certain pieces of information must be provided to clients before they enter into the contract.
What is contentious business?
Business done for the purpose of proceedings in a court
Litigation. Basically
what is non-contentious business?
Any other business that is not litigation proceedings.
What are the available options for solicitors fees?
Hourly rate
Fixed fee
Variable fees
What is a fixed fee?
A solicitor agrees with the client to complete the word for a fixed fee, or a fixed fee plus VAT and disbursements.
What are variable fees?
Solicitor is permitted, in certain situations, to charge a fee, which VARIES according to the outcome of the matter.
What are the examples of variable fees?
CFA - conditional fee agreement
DBA - damage based agreement
What is a CFA?
Non win, no fee.
Popular in personal injur.
The solicitor may agree to charge nothing if the client owes, but will charge their fee, PLUS an agreed “uplift”, or “success fee”, in the event of success
What is a DBA?
Provides that if the client recovers damages, the solicitors fee is an agreed percentage of those damages.
What are the formalities for a CFA?
Must be in writing, signed by both solicitor and client, and where a success fee is to be paid, specifically the percentage of the success fee.
What is the maximum success fee?
10% uplift iin the normal hourly charge rate.
Cap at 25% in personal injury cases of general damages recovered.
If a client LOSES, what must the client still pay in a CFA?
They will usually have to pay the disbursements, such as court fees, barristers fees, and VAT.
They may also have to pay the opponents costs.
What is the maximum amount for DBA?
Must NOT be a move 50% of the sum of damages recovered by by client (including VAT in this percentage).
What formalities need to be completed with in respect of the solicitors bill?
Bill must contain enough information for the client to be satisfied that the bill is reasonable
Bill must be signed by the solicitor or on the solicitors behalf, by an employee authorised to do so.
Bill must be delivered by hand to the client, by post to clients home, or by email if this is AGREED.
What are interim bills?
Solicitor may wish to bill client for work DONE, before matter has been completed.
What are the 2 different tpes of interim bills?
Statute bills
Bill on account
What is an interim statute bill?
Comply with the provisions of the Solicitors Act 1974.
They are self-contained final bills, in respect of the work covered by them.
What are interim “bills on account”
These are request for payments on account of the final bill, which will be delivered at the end of the matter
MORE popular that statute interim bills.
What is the benefit of an interim bill on account?
It does not need to represent the final figure for costs.
What is the disadvantage of an interim bill On account?
Unlike with an interim statute bill, a solicitor is UNABLE to sue client for non-payment of the bill.
What is the interest on bills in non-contentious matters?
Non contentious: solicitor may charge interest on the WHOLE or OUTSTANDING part f unpaid bill, with effect from 1 month after delivery of bill.
8%
What is the interest on bills in contentious business?
Solicitor may charge interest on an unpaid bill, where the solicitor expressly reserves this right in the retainer, or the client later agrees.
Can the client challenge the bill ? What are the 2 ways?
Yes
By the court
Through complaint procedures
How can the client challenge the bill through court?
Client must apply within 1 month from the date of delivery.
Can apply within 12 months, but will require leave of the court.
Costs officer will assess it.
Costs will be assessed on an indemnity basis, and allow only costs that have been reasonably incurred by the solicitor and which are reasonable in amount.
In non contentious proceedings, what will the court regard to assess if the costs are reasonable?
Complexity of matter
Specialised knowledge and skill involved
Time spent
Number and importance of Documetns prepared
Place and circumstances
Amount or value of any money or property involved
If any land is registered
Importance of matter to client
Approval of entitled person
In contentious proceedings, what will the court regard to assess if the costs are reasonable?
Conduct of parties
Amount or value of any money
Importance of matter to parties
Complexity of matter
Skill and knowledge involved
Time spent on case
Place where and circumstances in which work was done
What is the firms complaints procedure?
Solicitors must ensure that clients are informed in writing about it.
Legal ombudsman, may limit solicitors fees, or remit all or part.
To be enforceable , what must be done for non contents agreement and solciitors remuneration?
S 57 of solicitors act 1974.
Be in writing
Signed by client
Contain all terms of agreement
To be enforceable , what must be done for CONTENTIOUS agreement and solciitors remuneration?
May be gross sum, hourly rate or salary.
Cannot be remunerated by contingency fee
Agreement must STATE it is a contentious business agreement
Must be in writing
Must be signed by client
Msut contain all the terms
