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SQE - LEGAL SYSTEM & Admin Law > Funding for Legal Services > Flashcards

Funding for Legal Services Flashcards

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1
Q

What are the funding options for legal services (6)

A
  1. Conditional fee agreement
  2. Damages based agreement
  3. Fixed fees
  4. Third party funding
  5. Legal expenses insurance
  6. Legal aid
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2
Q

What is a written retainer?

A

Terms and conditions
Contract between solicitor and client

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3
Q

What should a retainer include?

A

Terms of services
Work to be undertaken and completed
How the work will be charged and paid for

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4
Q

What is private funding?

A

C pays fees themselves
Personally responsible
Fees/disbursements
Calculated on hourly rates

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5
Q

How is time recorded for private costs?

A

In units - 6minutes per unit

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6
Q

What do solicitors need to provide to clients about costs?

A

Estimated costs info at the start
Updated throughout if costs change
Open opened
Can be fixed fees

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7
Q

What happens if a solicitor deliberately over charges?

A

Breach their professional conduct

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8
Q

What are fixed fees?

A

Agreement to complete work for a fixed fee. Cannot be changed at a later date unless client consents

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9
Q

What is a conditional fee agreement?

A

Agreement only paid in certain circumstances.
C only liable to pay if c wins case.

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10
Q

What is the fee payable under a CFA?

A

Success fee plus solicitors costs

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11
Q

What is a success fee?

A

A percentage of a solicitors usual hour rates

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12
Q

What can the success fee not charge?

A

Cannot exceed 100% of solicitors charging rate

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13
Q

How is a success fee set?

A

According to the risk of the case

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14
Q

What is the cap of the success fee in PI cases?

A

25%

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15
Q

Who is always payable for the success fee?

A

The client

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16
Q

Under a CFA is a client still liable to pay other sides fee if they lose?

A

Yes

But obviously they don’t pay their costs or success fee!!

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17
Q

When are CFAs enforced?

A

The success fee cost in writing

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18
Q

If the success fee isn’t in writing what happens?

A

Deemed unenforceable & client does not have to pay the solicitors costs

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19
Q

What is a damaged based agreement?

A

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.

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20
Q

If a clients case is unsuccessful on a damage based agreement would they need to pay their solicitors fees?

A

No

21
Q

If a shortfall is found after the other side has paid their costs under a damage based agreement does the c pay the shortfall?

A

Yea

22
Q

What is the CAP for damage based agreements?

A

50% of damages recovered
25% PI Cases
35% employment cases

23
Q

For damage based agreements to be enforceable what is needed?

A

Must be in writing outline the fee payable and the agreement as to why dba has been set

24
Q

As CFAs & DBA don’t include disbursements or other sides fees what else is available?

A

Legal expense insurance

25
Q

There at two types of legal expense insurance what are they?

A

Before the Event Insurance
&
After the Event Insurance

26
Q

What is before the event insurance?

A

Existing polices with legal expenses included and insurer must accept the claim. Usually have a cap

27
Q

What is after the event insurance?

A

Take out after the event
Can be expensive

28
Q

Third party funding what is it

A

Someone not connected to the proceedings agrees to fund litigation.

29
Q

Who are usually third party funding persons?

A

Trade unions
Litigation funding companies as they get a fee if the case wins (usually for commercial cases)

30
Q

Is legal aid available for civil and criminal cases?

A

Yes

31
Q

Who administers the legal aid scheme?

A

Legal Aid Agency

32
Q

What is the act for legal aid?

A

Legal Aid, Sentencing & Punishment of Offenders Act 2012

33
Q

Do firms need a legal aid contract with the LAA?

A

Yes

34
Q

Civil Legal Aid is classed as two ways what are they?

A

Controlled Work or Licensed Work

35
Q

What are the two controlled legal aid in civil cases?

A

Legal Help - basic advice drafting a letter

Help @ Court - advice and assistance at a court hearing

36
Q

What is licensed work in civil legal aid cases?

A

Legal Representation under a legal aid certificate

37
Q

Who is legal aid available to for civil cases?

A

Client who is a party to proceedings or about to start proceedings

38
Q

What areas do civil legal aid cover:-

A

Some family law if client is v of DV
Care proceedings
Homelessness
Discrimination
Immigration
‘Exceptional’ cases v rare

39
Q

What are the two tests for legal aid in civil cases?

A

Means & Merits Test

40
Q

What is the merits test for controlled work - legal help & help at court?

A

Sufficient benefit test
If there is sufficient benefit to the c taking into account circumstances of case and clients personal circumstances

41
Q

What is the merits test for legal representation (licensed work)?

A

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

42
Q

What is the means test for civil legal aid?

A

Capital and income below £8000
£3000 for immigration

Partners income & capital will be assessed

43
Q

What benefits usually satisfy the civil legal aid means test?

A

Universal credit
Income support
Income based JSA
income related ESA
Guarantee credit element of pension credit

44
Q

Civil legal aid eligibility limits?

A

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

45
Q

What are the two legal aid tests for criminal legal aid?

A

Interests of justice & means test

46
Q

What is the interests of justice test for criminal legal aid?

A

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

47
Q

Is the interests of justice automatic in the crown court?

A

Yes

48
Q

What is the means test in criminal legal aid?

A

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

I

SQE - LEGAL SYSTEM & Admin Law (14 decks)

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