Funding of Legal Services

Question 1

What should you do before the retainer is entered into?

Answer 1

Clear and transparent advice of costs and funding options, including cheaper options if they can afford it, like private funding

Question 2

Should a solicitor encourage the client to enter into one funding arrangement without explaining the others available to them?

Answer 2

No

Question 3

What is a conditional fee arrangement?

Answer 3

“No win no fee” but pay defendants costs and expenses + solicitors disbursements
Win = fee + success fee (100% cap)

Question 4

What percentage of the normal fees charged under a conditional fee arrangement can a solicitor charge a client?

Answer 4

100%

Question 5

For which matters are a solicitor prohibited from using a conditional fee arrangement?

Answer 5

Family matters

Question 6

When proposing a conditional fee arrangement, what should the solicitor ensure?

Answer 6

1. That the success fee does not exceed 100%
2. That the client knows they will be responsible for the successful party’s costs

Question 7

What is a Damages Based Agreement?

Answer 7

1. % of damages award
2. No success = no fee OR disbursements
3. Cap = 50% or 25% for personal injury cases
4. Amount solicitor recovers from other side deducted to what client owes

Question 8

What should the Damages Based Agreement always include?

Answer 8

1. Definition of success
2. What happens when adverse costs are awarded
3. Termination

Question 9

What is third-party funding, also known as litigation funding?

Answer 9

Third party covers cost of fees and disbursements
EXCLUDES finance for other side’s costs

Question 10

What is before the event insurance?

Answer 10

Insurance that covers lawyers costs taken out before the event occurs.

Question 11

Name some typical before the event insurance and when should a solicitor ask about it?

Answer 11

The solicitor should ask at the beginning of the retainer.
Found in household policiies

Question 12

What is after the event insurance?

Answer 12

Taken out after the claimable event

Question 13

What does after the event insurance cover?

Answer 13

Disbursements only and other side costs

Question 14

When is civil legal aid available to clients?

Answer 14

Aid for eligible clients only to use lawyers contracted to the Legal Aid Agency only

Question 15

What disputes are covered by civil legal aid?

Answer 15

Housing
Family
Debt

Question 16

Is civil legal aid available for contract or tort issues?

Answer 16

No

Question 17

Can civil legal aid be withdrawn?

Answer 17

Yes, if merits change and opponent raises concerns about conduct

Question 18

Can the court order that a legally aided party pay the other party’s costs?

Answer 18

No

Question 19

What are the tests for civil and criminal legal aid?

Answer 19

Merits and means

Question 20

What is the means test for legal aid?

Answer 20

Consideration of financial means

Question 21

When is the means test not applied ?

Answer 21

For U18 clients who have benefits like Jobseekers Allowance or Universal Credit

Question 22

Can a client be made to contribute to legal fees in criminal legal aid?

Answer 22

Yes, by the Crown Court

Question 23

What is the merits test?

Answer 23

Prove that it is in the interests of justice to receive funding like:

1. will you lose livelihood or liberty
2. Will you be unable to present your own case

Question 24

When is the merits test not applied?

Answer 24

Crown Court matters