First Client Engagement Flashcards
What is the purpose of the first interview?
The solicitor will:
1) Identify the client’s objectives in relation to the work to be done,
2) Give the client a clear explanation of the issues involved and options available,
3) Agree with the client the next steps to be taken,
4) Keep the client informed of the progress.
What duty does the solicitor owe to their client with regards to costs?
Para 8.7 of the SRA Code of Conduct - solicitor must provide client with best possible information about how their matter will be priced (at the time of engagement and when appropriate as the matter progresses). This should include a ceiling or review dates.
What is a Conditional Fee Arrangement?
Defined at s.52(2)(a) Courts and Legal Services Act 1990 - an agreement for an advocate or litigator to have his fees and expenses (or any part of them) paid only in specified circumstances.
What requirements must be met in order to offer a valid CFA?
According to ss.58 and 58A CLSA 1990, the CFA:
1) must not relate to proceedings which cannot be the subject of an enforceable CFA,
2) must be in writing, and
3) the % must not exceed the % specified in relation to the description of the proceedings to which the agreement relates.
What are the rules for solicitor on charging a success fee?
Reg 3, CFA Order 2013 (SI 2013/689):
The success fee cannot exceed 100% of the solicitor’s normal charges.
A solicitor should never arbitrarily set the level of the success fee; a proper risk assessment should always be carried out.
Where a CFA is agreed, who pays for disbursements?
The client, through the course of litigation, will have to find disbursements such as fees for Counsel or expert witnesses, as well as travelling expenses.
What is a damages based agreement?
Defined at s.58AA(3) of CLSA 1990:
If the client recovers damages, the solicitor’s fee is an agreed % of those damages.
What requirements must be met in order to charge a DBA?
DBAs must meet the requirements of S.58AA(4) of CLSA 1990:
1) Must be in writing.
2) Must not relate to proceedings which cannot be the subject of an enforceable CFA.
3) Must not provide for a payment above “50% of the sum ultimately recovered by the client”. This also includes counsel’s fees but does not include disbursements.
4) The terms and conditions must specify:
- the claim to which the agreement relates,
- the circumstances in which the representative’s costs and expenses are payable,
- must only be made after the person providing the services under the agreement has provided the prescribed information.
What benefits does After Event Insurance provide?
AEI can be used by the client to fund their own disbursements, as well as the other side’s (upon losing the case).
