Funding of legal services Flashcards
What does the client pay for with a conditional fee arrangement?
If the client is successful, they may have to pay a percentage uplift of the solicitor’s fees up to 100% of the normal fees charged.
If unsuccessful, the client will not pay any fee to their solicitor, though they will be liable for disbursements, as well as the other side’s costs and disbursements.
What costs are not covered by a conditional fee agreement?
Disbursements
Defendant’s costs + disbursements
What can be recovered under a Damages Based Agreements?
Personal injury - no more than 25%
Other cases - no more than 50%
What must a damages based agreement include?
A definition of success, what happens in the event of adverse costs, and how the agreement can be terminated
What happens if the claimant is unsuccessful?
They will pay nothing but the other side’s costs and disbursements
Third party funding: What must a client pay if they win/lose?
If they win, a proportion of damages. If they lose, only the other side’s costs and disbursements
What is before the event insurance?
Insurance included in a contract package (normally road traffic). It covers all three: costs, disbursements, and the other side’s costs
What is after the event insurance?
It is typically taken out in conjunction with a conditional fee agreement, to cover the cost of disbursements and the other side’s costs
What is civil legal aid and when is it applicable?
It is applicable to housing disputes, family issues, and debt issues
It incorporates a means and merits test. The client needs to show good prospects of success.
Means test = passporting benefits
Client needs to engage a solicitor whose firm has an LAA contract. Legal Aid client will not generally to be ordered to pay the other side’s costs
What is trade union funding?
Generally it is the same as BTE insurance in that it covers costs, disbursements, and the other side’s costs
