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Legal Services > Funding Options > Flashcards

Funding Options Flashcards

1
Q

What is a retainer

A

Contractual relationship between solicitor and client

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2
Q

What are costs

A

Fees and disbursements

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3
Q

What should you do if you think your client is eligible for legal aid work but you don’t offer legal aid

A

You must advise them to go elsewhere

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4
Q

What info about costs should you provide to your client and when

A

Provide the best possible information about pricing at engagement and as the matter progresses

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5
Q

What SRA principles would be breached by overcharging

A

Integrity

Best interests

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6
Q

What if a court assessed a bill and reduces it by more then 50%

A

Must inform SRA

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7
Q

When will a client still pay their own fees even though their opponent was ordered to pay them

A

When the opponent is bankrupt or ordered to pay less than the full amount so the client pays the difference

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8
Q

When to discuss before the event insurance

A

Ask your client to bring their policies and those of their spouse or partner to the first meeting

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9
Q

Can you use any solicitor if you rely on BTE insurance

A

Yes even where the insurer wants to use theirs

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10
Q

Can you use BTE and ATE insurance together

A

Yes

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11
Q

Can ATE insurance be obtained for all cases

A

Not for family law but most other civil matters

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12
Q

What does ATE insurance usually cover

A

Opponents costs and disbursements

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13
Q

What do you pay for ATE insurance

A

Always pay premiums no matter what the outcome of the case is because these are not recoverable from the other side

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14
Q

When does ATE insurance pay out

A

Only pays out at the end of the case even if client is required to pay through the case in installements

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15
Q

Can you always rely on a BTE insurance policy

A

No the insurer must first accept the claim

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16
Q

What is private funding

A

Fee earning and hourly rate
Clients responsible for fee no matter what the outcome
Disbursements and expenses in addition to hourly rate

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17
Q

What is a conditional fee agreement

A

Pay a success fee (percentage increase in normal fee) which cannot exceed 100% and 25% cap of damages for personal injury
Must be a civil matter (not family) in writing and state success fee
No need to show inability to fund In other ways
Opponent never pays success fee
Conduct risk assessment to calculate success fee. Give advice on how this was arrived at
If they lose won’t pay fees but still pay disbursements and opponents fees - ATE insurance

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18
Q

What is a damage based agreement

A

Contingency fee- percentage of damages
Cap of 50% of damages incl VAT and counsel fees but excl. other disbursements
25% cap personal injury and 35% cap employment
Costs payable by opponent are set off against contingency fee and client only pays balance
If they lose no fees but pay disbursements and opponents costs - ATE insurance
No cap for appeal proceedings
In writing, specify proceedings it related to, when payable and reasonable for setting fee at that level.

19
Q

Do you still pay continence fee in DBA if you settle and terminate agreement early

A

Yes

20
Q

Third party funding eg trade union

A

Someone with no connection funds case in return for fee payable from money won at end

Not for personal injury or consumer cases

Unlikely to take it on if you would be left with less than 50% of damages after deduction of fee

Need good chance of success

3rd party may have to pay opponents costs if you lose

21
Q

Fixed fee

A

Charge known at outset
Must complete work even if unprofitable
Cannot be altered later unless client agrees

22
Q

Non contentious business agreement

A

Solicitor gets sun, percentage, commission, salary or otherwise

In writing signed by clients and incl all terms
State if disbursements and VAT are separate

Client cannot ask court to assess bill but may set aside if unreasonable

23
Q

Contentious business agreement

A

Solicitor gets sun or salary etc
Cannot be a contingency fee
State it is a CBA, in writing, signed by client, contain all terms
Cannot apply to court for assessment unless it is an hourly rate but court can set aside if unreasonable

24
Q

Can all firms do LA work

A

No firm must have contract with LAA covering relevant type of work

25
Q

Audit requirements for LA firms

A

Firms with a contract get annual audit from LAA

26
Q

Do you have to accept a legal aid client

A

No firms with contracts are not obligated to accept clients instructions or act on a LA basis for them

27
Q

What if your LA client is unreasonable or misleading LAA

A

Duty to LAA overrides confidentiality

Must inform LAA

28
Q

Two categories of civil legal aid work

A

Controlled work (solicitors determine eligibility) and licensed work ( LAA determine eligibility)

29
Q

Three types of services for civil legal aid

A 
Legal help (controlled) - basic advice and limited steps 
Help at court (controlled)- specific hearing not case in general 
Legal representation (licensed) - full case
30
Q

What types of work is LA available for

A

Sch 1 part 1 LASPO includes homelessness, domestic abuse, discrimination, immigration and care proceedings

Or exceptional circumstances - refusal would breach human rightsp

31
Q

How to get LA

A

Apply to LAA who issue legal aid certificate
Maybe in an investigative or full basis
May have restriction or cost cap

32
Q

Tests for eligibility of civil legal aid

A

Merits test- chance of success and a cost benefit analysis

Means test - capital and income plus resources of partner cannot exceed limit

33
Q

Merits test for civil LA

A

Chance of success

Plus cost/ benefit analysis for money cases - damages v costs

Or cost/ benefit analysis for non money cases - benefit to gain justified likely costs so a reasonable privately paying client would proceeds

34
Q

Can you get civil legal aid if you have other funding options or are suitable for a CFA

A

No LAA will refuse application

35
Q

Means test for civil legal aid

A

Capital limit: £8k or £3k for immigration.

Income: gateway benefits may automatically qualify you for income but capital must still be considered

Gross income cannot be more than £2,657 monthly. Make deductions to get disposable income which must be less than £733 monthly.

36
Q

Do you ever need to contribute to civil LA

A

If income above £315 or capital above £3k for licensed work will need to contribute

37
Q

Do you ever need to repay Civil legal aid

A

Statutory charge- if client benefits from case, use it to repay fees. For settlements as well as court orders. Money kept as well as money gained

LAA always tries to recover money. Make costs order agains opponent. Then keep client contributions, then statutory charge

Solicitor must pay statutory charge from money held for client. Can postpone if home, protect with charge on register and charge interest

38
Q

Does the reasonably privately paying client test apply to criminal

A

No only civil

39
Q

Can you get free advice at police station

A

Yes regardless of means

Even if arrested or attending voluntarily

40
Q

Can duty solicitor refuse case on basis it would be unprofitable

A

No

41
Q

How to get free representation once your charged with offence

A

Apply for LA and satisfy means test and interest of justice test

If successful application made, representation order is sent to solicitor so they can begin incurring costs cover by LAA
Terms of representation order may be extended to cover an appeal

42
Q

Interest of justice test for criminal LA

A

Automatically met if under 18 or crown court trail - only consider means test

Factors:
Loss of liberty, livelihood or reputation, substantial question of law, cannot understand proceedings or state case, interviewing witnesses, interest of another person, other reasons

43
Q

Means tests for criminal LA

A

Automatically met if under 18 or gateway benefits

Otherwise adjusted income
£12,475 or less eligible for MC and CC
£12,475 - £22,325 full means test for MC & CC
£22,425+ not eligible MC & full means test CC

Full means test calculates disposable income
For MC must be £3,398 or less
For CC if between £3,398-£37,500 may need to contribute

Legal Services (5 decks)

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