Funding of Legal Services Flashcards
What should you do before the retainer is entered into?
Clear and transparent advice of costs and funding options, including cheaper options if they can afford it, like private funding
Should a solicitor encourage the client to enter into one funding arrangement without explaining the others available to them?
No
What is a conditional fee arrangement?
“No win no fee” but pay defendants costs and expenses + solicitors disbursements
Win = fee + success fee (100% cap)
What percentage of the normal fees charged under a conditional fee arrangement can a solicitor charge a client?
100%
For which matters are a solicitor prohibited from using a conditional fee arrangement?
Family matters
When proposing a conditional fee arrangement, what should the solicitor ensure?
- That the success fee does not exceed 100%
- That the client knows they will be responsible for the successful party’s costs
What is a Damages Based Agreement?
- % of damages award
- No success = no fee OR disbursements
- Cap = 50% or 25% for personal injury cases
- Amount solicitor recovers from other side deducted to what client owes
What should the Damages Based Agreement always include?
- Definition of success
- What happens when adverse costs are awarded
- Termination
What is third-party funding, also known as litigation funding?
Third party covers cost of fees and disbursements
EXCLUDES finance for other side’s costs
What is before the event insurance?
Insurance that covers lawyers costs taken out before the event occurs.
Name some typical before the event insurance and when should a solicitor ask about it?
The solicitor should ask at the beginning of the retainer.
Found in household policiies
What is after the event insurance?
Taken out after the claimable event
What does after the event insurance cover?
Disbursements only and other side costs
When is civil legal aid available to clients?
Aid for eligible clients only to use lawyers contracted to the Legal Aid Agency only
What disputes are covered by civil legal aid?
Housing
Family
Debt
Is civil legal aid available for contract or tort issues?
No
Can civil legal aid be withdrawn?
Yes, if merits change and opponent raises concerns about conduct
Can the court order that a legally aided party pay the other party’s costs?
No
What are the tests for civil and criminal legal aid?
Merits and means
What is the means test for legal aid?
Consideration of financial means
When is the means test not applied ?
For U18 clients who have benefits like Jobseekers Allowance or Universal Credit
Can a client be made to contribute to legal fees in criminal legal aid?
Yes, by the Crown Court
What is the merits test?
Prove that it is in the interests of justice to receive funding like:
- will you lose livelihood or liberty
- Will you be unable to present your own case
When is the merits test not applied?
Crown Court matters
