Funding for Legal Services Flashcards
What are the funding options for legal services (6)
- Conditional fee agreement
- Damages based agreement
- Fixed fees
- Third party funding
- Legal expenses insurance
- Legal aid
What is a written retainer?
Terms and conditions
Contract between solicitor and client
What should a retainer include?
Terms of services
Work to be undertaken and completed
How the work will be charged and paid for
What is private funding?
C pays fees themselves
Personally responsible
Fees/disbursements
Calculated on hourly rates
How is time recorded for private costs?
In units - 6minutes per unit
What do solicitors need to provide to clients about costs?
Estimated costs info at the start
Updated throughout if costs change
Open opened
Can be fixed fees
What happens if a solicitor deliberately over charges?
Breach their professional conduct
What are fixed fees?
Agreement to complete work for a fixed fee. Cannot be changed at a later date unless client consents
What is a conditional fee agreement?
Agreement only paid in certain circumstances.
C only liable to pay if c wins case.
What is the fee payable under a CFA?
Success fee plus solicitors costs
What is a success fee?
A percentage of a solicitors usual hour rates
What can the success fee not charge?
Cannot exceed 100% of solicitors charging rate
How is a success fee set?
According to the risk of the case
What is the cap of the success fee in PI cases?
25%
Who is always payable for the success fee?
The client
Under a CFA is a client still liable to pay other sides fee if they lose?
Yes
But obviously they don’t pay their costs or success fee!!
When are CFAs enforced?
The success fee cost in writing
If the success fee isn’t in writing what happens?
Deemed unenforceable & client does not have to pay the solicitors costs
What is a damaged based agreement?
An agreement that a solicitor will receive payment for the services ONLY if the client is successful and the client obtains damages.
Solicitor chooses percentage and that percentage is used against the damage fee.
If a clients case is unsuccessful on a damage based agreement would they need to pay their solicitors fees?
No
If a shortfall is found after the other side has paid their costs under a damage based agreement does the c pay the shortfall?
Yea
What is the CAP for damage based agreements?
50% of damages recovered
25% PI Cases
35% employment cases
For damage based agreements to be enforceable what is needed?
Must be in writing outline the fee payable and the agreement as to why dba has been set
As CFAs & DBA don’t include disbursements or other sides fees what else is available?
Legal expense insurance
There at two types of legal expense insurance what are they?
Before the Event Insurance
&
After the Event Insurance
What is before the event insurance?
Existing polices with legal expenses included and insurer must accept the claim. Usually have a cap
What is after the event insurance?
Take out after the event
Can be expensive
Third party funding what is it
Someone not connected to the proceedings agrees to fund litigation.
Who are usually third party funding persons?
Trade unions
Litigation funding companies as they get a fee if the case wins (usually for commercial cases)
Is legal aid available for civil and criminal cases?
Yes
Who administers the legal aid scheme?
Legal Aid Agency
What is the act for legal aid?
Legal Aid, Sentencing & Punishment of Offenders Act 2012
Do firms need a legal aid contract with the LAA?
Yes
Civil Legal Aid is classed as two ways what are they?
Controlled Work or Licensed Work
What are the two controlled legal aid in civil cases?
Legal Help - basic advice drafting a letter
Help @ Court - advice and assistance at a court hearing
What is licensed work in civil legal aid cases?
Legal Representation under a legal aid certificate
Who is legal aid available to for civil cases?
Client who is a party to proceedings or about to start proceedings
What areas do civil legal aid cover:-
Some family law if client is v of DV
Care proceedings
Homelessness
Discrimination
Immigration
‘Exceptional’ cases v rare
What are the two tests for legal aid in civil cases?
Means & Merits Test
What is the merits test for controlled work - legal help & help at court?
Sufficient benefit test
If there is sufficient benefit to the c taking into account circumstances of case and clients personal circumstances
What is the merits test for legal representation (licensed work)?
Funding usually refused if prospect is less than 50%
Amount of damages
Would the reasonable client pursue the case if they were privately funding
If alternative funding is available
What is the means test for civil legal aid?
Capital and income below £8000
£3000 for immigration
Partners income & capital will be assessed
What benefits usually satisfy the civil legal aid means test?
Universal credit
Income support
Income based JSA
income related ESA
Guarantee credit element of pension credit
Civil legal aid eligibility limits?
Gross monthly exceeds £2657 will not qualify at all
disposable income deducted and monthly disposal is less than £733 will qualify
Between the two figures has a full eligibility test
Can still be asked to contribute to legal fees
What are the two legal aid tests for criminal legal aid?
Interests of justice & means test
What is the interests of justice test for criminal legal aid?
Will c lose their liberty or suffer damage to reputation?
Complex or significant law questions
Cross examination of witnesses
Interests of another person
Some other reason
Is the interests of justice automatic in the crown court?
Yes
What is the means test in criminal legal aid?
Anyone who receives benefits or under 18
Adjusted income less than £12475 - Eligible
Between £12475 - £22325 - subject to full means test
Over £22325 - not eligible in Mags Crt
Full means test in crown court
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