Funding Options for Legal Services - MCQs Flashcards
A solicitor agrees to act for a client on a ‘no win, no fee’ conditional fee agreement with a success fee of 25%.
Which of the following describes the costs position?
A. If the client wins, the solicitor’s fee will be calculated at 25% of the damages received.
B. If the client wins, the opponent will pay the success fee.
C. If the client wins, the client will pay nothing in respect of their own costs.
D. If the client loses, the client will have to pay disbursements.
E. If the client loses, the solicitor’s fee will be calculated at their usual charging rate.
D. If the client loses, the client will have to pay disbursements.
This is a ‘no win, no fee’ CFA, so if the client loses they will not have to pay anything in fees, but will still be liable for disbursements (and the opponent’s costs).
In a CFA the success fee is calculated as a percentage of the usual charging rate, not a percentage of the damages received. If the client wins they will have to pay the success fee as it cannot be recovered from the opponent.
A junior solicitor is approached by a wealthy individual in relation to a personal injury claim. The solicitor’s assessment of the case is that there is a good chance of obtaining substantial damages. The solicitor tells the prospective client that the firm has a strict policy of not acting on the basis of contingency fees. Nevertheless, the prospective client requests that the case be dealt with under a damages-based agreement (DBA).
Which of the following best explains whether the solicitor should agree or refuse to act under a DBA?
A. Refuse, because that is the firm’s policy.
B. Refuse, because the client can afford to pay privately for the solicitor’s costs.
C. Agree, because the client has the right to decide how their legal costs are funded.
D. Agree, because to do so is in the client’s best interests.
E. Agree, because the risk to the firm is low.
A. Refuse, because that is the firm’s policy.
It is for the client to decide how their costs are funded, but that does not impose an obligation on the part of a firm to act for a client on a particular basis. Therefore a firm may refuse to act under a DBA as a matter of policy. A junior solicitor should adhere to the firm’s policy even if the risk to the firm in an individual case is low. If it is in the client’s best interests to have a DBA the client should be referred to another firm.
A solicitor agrees to carry out a conveyancing transaction for a client at a fixed fee of £500 plus VAT and disbursements. A month into the transaction, it becomes clear that the solicitor will have to undertake much more work than was originally envisaged.
Which of the following best describes what the solicitor can do?
A. Tell the client that the solicitor can no longer act for the client.
B. Start charging the client on the basis of the solicitor’s hourly charging rate.
C. Ask the client to agree to an increase in the solicitor’s fees.
D. Write to the client providing the best possible information on the revised overall costs.
E. Carry out no further work on the transaction pending the client agreeing to an increase in fees.
C. Ask the client to agree to an increase in the solicitor’s fees.
A fixed fee cannot be changed at a later date if it transpires that the case is more expensive than originally thought (save with the client’s agreement). Although it is not a step to be undertaken lightly, all that the solicitor can do is to ask the client to agree to an increase. If the client refuses, the solicitor must complete the work for the fee agreed.
A solicitor is instructed by a client in a claim for damages. The client is in receipt of income support and has capital of £1,000. The solicitor is confident that the case has a good chance of success and satisfies the merits test. The client submits an application for legal aid in the form of Legal Representation.
Which of the following describes the costs position if the application is successful?
A. The client will be asked to make a monthly contribution towards their legal fees.
B. The client is entitled to free legal representation.
C. The client may have to repay some of their legal fees.
D. The solicitor can choose to charge for the work done at any hourly rate.
E. The solicitor can insist that the client pay money on account of costs.
C. The client may have to repay some of their legal fees.
If the client is awarded damages in the case, the effect of the statutory charge is that the client may have to repay some of their legal fees. Therefore the representation is not free (option B therefore is wrong). The client’s means are not such as would require them to make a contribution towards their legal fees (option A is wrong). The solicitor will be remunerated at set levels (option D is wrong). Finally, option E is wrong as the solicitor must look to the Legal Aid Agency for payment of their fees and so the solicitor cannot ask the client to pay money on account.
A solicitor is instructed by a client who is the defendant in possession proceedings. If the claimant succeeds in the case the client will be evicted and become homeless. However, the solicitor is confident that the client has a good defence and would win the case. The client has no capital and is in receipt of universal credit.
Is the client likely to be eligible for legal aid in respect of the proceedings?
A. No, because civil legal aid is only available to claimants.
B. No, because the case falls outside the scope of legal aid.
C. No, because a reasonable privately paying client would not be prepared to proceed with the case.
D. Yes, because a client in receipt of universal credit automatically qualifies for legal aid.
E. Yes, because the client satisfies both the means and the merits test.
E. Yes, because the client satisfies both the means and the merits test.
Legal aid is available to both claimants and defendants; accordingly, option A is wrong. A case in which the client is faced with homelessness is within the scope of legal aid; option B is wrong. The ‘reasonable privately paying client’ test would be satisfied given the threat of homelessness and the client has a good chance of success; option C therefore is wrong. Option D is wrong, as a client in receipt of universal credit does not automatically qualify for legal aid – they must still satisfy the merits test and the capital element of the means test. On these facts the client satisfies both the merits test (as above) and means tests (the client is in receipt of universal credit and has capital of less than £8,000).
A solicitor is instructed by a client who is the defendant in criminal proceedings. The client is charged with stealing from their employer. The case will be dealt with by way of a crown court trial. The client has no capital and is not in receipt of any welfare benefits.
Which of the following best describes the position with regard to the client’s eligibility for legal aid in respect of the trial?
A. Legal aid will not be granted if the risk of the client receiving a custodial sentence is low.
B. Legal aid will only be granted if a reasonable privately paying client would proceed with the case.
C. Legal aid will be granted if the client’s annual adjusted income is £10,000.
D. Legal aid will be granted because the client has no capital.
E. Legal aid is unlikely to be granted unless a conviction for stealing from an employer would result in serious damage to the client’s reputation.
C. Legal aid will be granted if the client’s annual adjusted income is £10,000.
To be eligible for criminal legal aid the client must satisfy both the interests of justice test and the means test. In a crown court trial the interests of justice test is automatically satisfied, so option E is wrong. The client has no capital, but their income is relevant for the means test (option D is wrong). An adjusted income figure below the limit of £12,475 satisfies the means test and therefore legal aid will be granted. The reasonable privately paying client test is relevant for civil legal aid (option B is therefore wrong).
