Funding

Question 1

What are the different forms of funding?

Answer 1

• Before the event insurance
• Private Funds
• Union and Association Funding
• Public Funding
• Conditional fee agreements ‘no win no fee’
• After the event insurance
• Damage based agreements
• Litigation funding

Question 2

Criteria for funding civil cases

Answer 2

set out in section 10 (3) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012:
- The likely cost of providing the services and the benefit which may be
obtained by them
- The availability of resources to provide the services;
- The importance for the individual of the matters in relation to which
the services would be provided
- The availability of other services, such as mediation
- Where the services are sought by an individual in relation to a dispute,
the individual’s prospect of success in the dispute
- The public interest.

Question 3

Public Funding (Legal Aid)

Answer 3

• Only available to certain types of people (children and immigration)
  NOT FOR PERSONAL INJURY
• Form of government funding so it derives from government budget

Question 4

Union/Association funding

Answer 4

• Usually used by those bringing a claim against their employer
• If they are a member of a trade union, they will pay into it and, if legal
  services are required, the trade organisation will provide them.
• it is likely that the union will want to use their own legal team to deal
  with the case.

Question 5

Conditional fee agreements

Answer 5

• If client wins: they pay solicitors fees and the normal fee
  -If client loses: they pay nothing

Question 6

Damage based agreements

Answer 6

• If claimant wins the solicitor will take a percentage of the awarded
  compensation.
• Maximum solicitor can claim for personal injury is 25%, or 35% for
  employment claim
• If claimant loses claim, they do not pay their solicitor’s fees but may still have to pay their opponent’s.