Legal Funding

Question 1

What is contentious business ?

Answer 1

Business done for the purposes of proceedings begun before a court

Question 2

What is before the event business ?

Answer 2

Solicitors fees covered by an existing policy

Question 3

What is after the event insurance ?

Answer 3

Policy is usually taken out to cover the clients own disbursements and liability for the opponents costs

Question 4

What is a non-contentious business agreement and what are the requirements?

Answer 4

Type of remuneration:
- in writing
- signed by client
- contains all terms of agreement

Question 5

What is contentious business agreement requirements ?

Answer 5

• must state it is a contentious business agreement
• must be in writing
• must be signed by a client and
• agreement must contain all the terms

Question 6

What is a conditional fee agreement ?

Answer 6

(No win no fee)
If solicitor is successful they will receive a enhanced fee to reflect that success.

Question 7

What are the requirements for a CFA ?

Answer 7

• be entered into in relation to civil litigation matters
• in writing
• state the percentage by which the amount would be payable if it were not a CFA is to be increased

Question 8

What are the restrictions on CFA ?

Answer 8

Success fee cannot exceed 100% of normal charges (additional cap of 25% on personal injury damages)

• if opponent is paying these fees they will not be required to pay the success fee (only client is)

Question 9

What is a damage based agreement ?

Answer 9

Similar to no win no fee but more linked to the damages awarded.

If lose no fee - there will be a % of damages agreed prior

Question 10

What are the restrictions on a DBA ?

Answer 10

Including VAT must not be more then 50% of sums recovered by client (inclusive of counsel fees)

Question 11

What are the two insurances a available ?

Answer 11

Before the event (BTE)
After the event (ATE)

Question 12

What does ATE cover ?

Answer 12

Covers legal fees other then your own (not available in family law)

Question 13

What is one of the requirements for legal representation aid ?

Answer 13

Must be more then 50% chance of success

Question 14

What is the statutory charge ?

Answer 14

Legal aid doesn’t mean it’s necessarily free - if they benefit from the case then that will be used to repay solicitors fees

Question 15

What legal aid is always free in criminal proceedings

Answer 15

Anyone attending police station is entitled to free legal aid.

Question 16

What are the two tests that must be satisfied for legal aid in criminal litigation ?

Answer 16

1) interest of justice test = must be in interest if justice:
- likely to lose livelihood
- question of law
- tracing or interviewing a witness

2) the means test = if under 18 or receive welfare then entitled to legal aid without needing to satisfy means test.

Question 17

What is a representation order ?

Answer 17

If successful in gaining criminal legal aid representation order will be sent to solicitor - can start incurring legal costs on behalf of the client to be covered by legal aid