Legal Funding

Question 1

What is a significant issue with court costs?

Answer 1

Going to court can be very expensive, needing to pay court fees in addition to lawyer fees.

Question 2

What are some means of funding a legal case?

Answer 2

Own resources, insurance, state funding, conditional fee, trade union membership, CAB, pro bono.

Question 3

What does ‘pro bono’ mean?

Answer 3

‘Pro bono’ means ‘for free’, and refers to lawyers providing services without charge.

Question 4

What is one method to fund a case through personal resources?

Answer 4

Using own financial resources to cover legal costs.

Question 5

How does state funding work in criminal cases?

Answer 5

It is provided on a demand-led basis, with no set budget, granted based on merits and means tests.

Question 6

What is the merits test for state funding?

Answer 6

It evaluates whether granting legal aid is in the interests of justice.

Question 7

What factors are assessed in the means test for funding?

Answer 7

The defendant’s financial position and the likely cost of the case.

Question 8

What type of legal aid is provided for housing, debt, and family matters?

Answer 8

Civil legal aid.

Question 9

What type of cases do trade unions typically help members with?

Answer 9

Employment issues or industrial accident claims.

Question 10

What legislation governs Conditional Fee Agreements (CFAs)?

Answer 10

Courts & Legal Services Act 1990 & Access to Justice Act 1999.

Question 11

How does a Conditional Fee Agreement (CFA) work?

Answer 11

A private agreement where fees are owed only if the case is won, with potential uplift fees.

Question 12

What happens if a client loses in a CFA arrangement?

Answer 12

The lawyer receives no fee and the client pays the winner’s costs.

Question 13

How is the uplift fee determined in a CFA?

Answer 13

It is an agreed percentage added to the lawyer’s fee if they win.

Question 14

What changes were made to success fees in CFAs after LASPO 2012?

Answer 14

Success fees are no longer recoverable from the losing party, except for certain claims.

Question 15

What is the cap on success fees for personal injury cases after LASPO 2012?

Answer 15

Capped at 25%.

Question 16

What cannot be covered by conditional fee agreements after LASPO 2012?

Answer 16

Medical negligence cases.

Question 17

What are some advantages of Conditional Fee Agreements (CFAs)?

Answer 17

Small upfront expenses and an incentive for lawyers to win.

Question 18

What are some disadvantages of Conditional Fee Agreements (CFAs)?

Answer 18

Lawyers may avoid ‘risky’ cases and overall costs may increase.

Question 19

What is the role of the Legal Aid Agency?

Answer 19

It determines eligibility for legal aid based on the merits and means tests.

Question 20

What consequence does the costs of legal action have on individuals?

Answer 20

Costs can be huge and may deter people from seeking legal representation.

Question 21

What could be other non-financial costs of legal action?

Answer 21

Loss of reputation, stress, and time consumption.

Question 22

How do court fees vary in money claims?

Answer 22

Fees depend on the amount of money being claimed.

Question 23

What happens if costs cannot be agreed upon in a legal case?

Answer 23

An assessment of costs will take place, prepared by a costs lawyer.

Question 24

What is a strategy for reducing up-front legal costs in some cases?

Answer 24

Entering into a no win no fee agreement.

Question 25

What does the means test for civil legal aid consider?

Answer 25

The financial position of the client seeking assistance.

Question 26

What does the government provide to aid people in gaining legal representation?

Answer 26

Support through legal aid for those with limited financial resources.

Question 27

What is the definition of the civil branch of legal aid?

Answer 27

The Criminal Defence Service, established by the Access to Justice Act 1999.

Question 28

What type of legal financial support does CAB provide?

Answer 28

Support for community members needing legal information and representation.

Question 29

What kind of assistance does civil legal aid cover?

Answer 29

Negotiating agreements, court assistance, and family mediation.

Question 30

In the context of CFAs, what is the 'success fee'?

Answer 30

An additional fee charged if the case is won, capped at certain percentages.

Question 31

What does 'no win no fee' imply in legal arrangements?

Answer 31

Clients only pay legal fees if their case is successful.

Question 32

Why might a lawyer refuse to take on a particular case under a CFA?

Answer 32

The case may be considered too risky.

Question 33

What are ATE insurance costs associated with CFAs?

Answer 33

After the Event insurance costs that clients usually need to pay.

Question 34

What impact does the success fee cap of 25% have on lawyers?

Answer 34

It reduces the potential earnings from personal injury case wins.

Question 35

How could a successful party recover costs from the losing side?

Answer 35

Through a prepared bill of costs served on the losing party.

Question 36

What should clients consider before entering a Conditional Fee Agreement?

Answer 36

The implications of costs, risks, and success fee arrangements.