Funding Options

Question 1

Ways of charging client?

Answer 1

1.Hourly charging – not the same as billing the client – because partner will decide how much time to write off
- Fixed fees arrangement - when case is straightforward and can accurately estimate how much time they will spend on the case.
If it’s a fixed fee arrangement then any excess must be WRITTEN OFF.
- Capped fees
- Unbundles legal services

2.Private retainer
- Many businesses will do this

3.Professional funding
- Lega work may be funded by a trade union or professional organisation.

4.Before the event insurance
- Taken out before the need for legal work arises, the insurance policy pays out to cover the legal work in the event that it is needed.
- If case is successful solicitor will be paid normal fee plus a success fee.
- In personal injury cases – success few must not exceed 25% of damages

5.Damages based agreements
- No win no fee agreement.
- Maximum amount a solicitor can recover is capped at 25% for damages in personal injury claims
- 35% of damages in employment tribunal cases
- 50% in all other cases

6.After the event insurance
- One way of funding cost associated with civil litigation
Third party funding
- When independent litigation funding provided by a third party to enable parties to bring their cases to court

7.Community legal services
- Known as legal aid

Question 2

Paying fees from private own funds?

Answer 2

Private retainer.

Question 3

Legal aid? Civil work?

Answer 3

Is the client and individual or a legal person?
- only generally available to individuals.

What rhos did claim?
- children and family matters

Clients means?
If too high then ineligible.

What are the merits of the clients position?
- if I sufficiently meritorious then won’t receive it.

Question 4

Funding in criminal proceedings?

Answer 4

ALL SUSPECTE entitled to free legal advice at police station REGARDLESS OF THEIR MEANS.
LIMITED TO PHONE CALL FOR NON INPRISIONABLE OFFENCES

Public funding for court
Must pass
The merits test the woman’s test

MEANS TEST
automatically pass if under 18, or on universal credit or benefits.

Means test magistrates
- initial assessment - weighted gross annual income.
- will be eligible if less than £12,475
Be required to undertake a full means test if between 12,475 and 22,325 - establish annual households disposable income - ANNUAL disposable income is less than 3398

MEANS TEST CROWN COURT
Assessed on their income and capital
Combined capital and equity allowance if £30,000
Outcome do assessment may require defendant to pay all or some or none.

ANNUAL idosoavle income
Ineligible for it if over 37500
Eligible for public funding with a contribution if in between the thresholds 3388 and 37499 - the contribution is 90% of disposable income for a maximum of a 6 months in instalments.

Merits test
Interest of justice test

AUTONATICALLY PASS THIS IF CROWN COURT OR INDICTABLE OR EITHERWAY AND AT CROWN COURT

INTERESTS OF JUSTICE TEST-
lose libertysebtcne that is suspended or non custodial and could be dealt with for original offence again
Likely to lose livelihood
Suffer serious damage to my reputation
Substantial question of law may be infringed
Not understand court proceedings
Witnesses may need to be traced or interviews on behalf

Question 5

Fails mean or merits test?

Answer 5

If they fail the means test - NO RIGHT OF APPEAK but can submit another form if their circumstances have changed.

If they fails the merits test - ONLY MAGISTRATES - they can submit another application and if unsuccessful can appeal to the magistrates court.

Question 6

Conditional fee arrangement?

Answer 6

No win no fee arrangement.

When calculating
You do the normal calculation t work out how much the fee is.
Then you do the percentage times that amount to get the total sum.