Legal Services Flashcards
What are the 7 regulated providers of Legal Services?
SRA Bar Standards Board CILEX Intellectual Property Regulation Board Council of Licensed Conveyancers Costs Lawyer Standards Board Master of the Faculties
What is the role of the SRA?
Regulates solicitors and law firms in England and Wales, non-lawyers who are managers or employees of regulated firms and registered foreign lawyers
What is the role of the Bar Standards Board?
Regulate barristers
What is the role of CILEx?
Regulate legal executives
What is the role of the Intellectual Property Regulation Board?
Regulate patent and trademark attorneys
What is the role of the Council of Licensed Conveyancers?
Regulate individuals and firms which specialise in property and probate transactions
What is the role of the Costa Lawyer Standards Board?
Regulate lawyers who specialise in the preparation of bills and schedule of costs
What is the role of the Master of the Faculties?
Regulate notaries
What are the 5 reserved legal activities?
Exercise of the right of audience Conduct of litigation Reserved instrument activities Probate activities Administration of Oaths
What is the exercise of a right of audience?
Having the right to appear in and address a court including to call and examine a witness
What is the conduct of litigation?
Issuing and defending proceedings
What are reserved instrument activities?
Preparing a transfer of charges
Applying and lodging documents under the Land Registration Act
Preparing any other instrument relating to real or personal estate
What are probate activities?
Preparing probate papers or court documents relating to probate proceedings
What is the administration of oath?
Administering an oath or taking affidavits
When does the SRA require a firm to implement professional indemnity insurance?
When they provide reserved legal activities
Where can a firm find the requirements for professional indemnity insurance?
Professional Indemnity Rules
What are the requirements for professional indemnity insurance for firms?
Minimum coverage is confirmed in the Professional Indemnity Rules
Firms must ensure that insurance coverage is adequate and appropriate
How would a firm determine what is adequate and appropriate professional indemnity cover?
Must consider: Type of client Valuer if matters taken on each year Transparency of information provided to clients about insurance cover Claims history for firm
When would the SRA intervene with regards to professional indemnity insurance?
When the firm cannot show they have considered the required factors
What are the insurance requirements for freelance solicitors if they are not carrying out reserved legal activities?
They do not need authorisation as a sole practitioner firm with the SRA and therefore do not have an obligation to provide indemnity insurance.
What is a freelance solicitor?
Someone who practices in their own (with no employees) and their clients pay them directly.
What are the insurance requirements for a freelance solicitor carrying out reserved legal activities?
Must have 3 years post-qualification experience
Must not hold client money
Must take out and maintain adequate and appropriate insurance
Do not need to purchase insurance on the SRAs minimum terms but need to notify the SRA that they are acting as a freelance solicitor
What are the insurance requirements for solicitors in an non-commercial body (charities)?
The solicitor must ensure that the body takes out and maintains indemnity insurance with adequate and appropriate coverage
What are the 2 methods of funding non-litigation matters?
Private retainer and funding
Fixed fee financing
What are the requirements of a private retainer and funding?
In writing
Contain all the relevant terms
Signed by the client
How is a private retainer and funding billed?
Solicitor will usually ask for a sum up front ‘on account’ to cover any disbursements. The solicitor will then invoice costs and disbursements on a monthly basis
What is fixed fee financing?
A fixed fee will be agreed with the client at the outset.
If a client is quoted £100 for legal fees, can VAT then be charged on completion?
No, if VAT was to be charged in addition this would have had to be specified from the outset.
What are the types of funding for litigation?
Private funding Conditional Fee Agreement Damages Based Agreements Third Party Funding Legal Expenses Insurance Union Cover Civil Legal Aid Criminal Legal Aid
What is private funding in a litigation matter?
The client pays their own legal fees
What is a conditional fee agreement within a litigation matter?
If the case is successful, solicitor can charge their fee with a percentage uplift
OS responsible for normal fees and client liable for uplift.
If not successful client will not pay costs but still be liable for OS costs and disbursements and their own disbursements
What are the limitations to a conditional fee agreement in a litigation matter?
The success fee cannot exceed 100% of the normal fees charged
Cannot be charged in family proceedings
What is a damages based agreement in relation to a litigation matter?
Contingent on the success of the claim and recovery of damages
If nothing recovered - nothing can be paid
If claim is successful, the solicitors standard time costs can be recoverable from the losing defendant
What are the percentage limitations to a damages based agreement in a litigation matter?
Personal Injury - 25%
Non Personal Injury - 50%
Of sum recoverable excluding future losses
What is the definition of success for damages based agreements?
This will be determined at the outset when agreeing the funding method.
What is third party funding in a litigation matter?
When a third party covers the cost of legal fees and disbursements but not the other sides costs.
The funded will usually expect to make a profit from funding (usually between 15-45%
What are the 3 types of legal expenses insurance?
Before the event insurance
Designated solicitor
After the event insurance
What is before the event insurance?
Usually offered through car or home insurance and the insurer will pay the solicitor’s legal costs.
What is a designated solicitor in legal expense insurance?
Such policies require the use of a designated solicitor.
What is a solicitors obligation to check before agreeing a fee arrangement with a client?
That they do not have any insurance policies that would cover their fees - even if this means they cannot take on the case.
What is after the event insurance?
Taken out after an accident or event giving rise to a claim occurs.
In exchange for insurance premiums, the insurance company will pay the cost of disbursements.
Most cover the risk of having to pay costs to the other side if the claimant is unsuccessful.
What is union cover in a litigation funding matter?
If a client is a member of a union, they may have entitlement to legal expense cover as part of their union subscription.
What is civil legal aid?
Might be available if the client is on low income.
The funding is only available through firms contracted to the legal aid agency.
What are the two tests required for civil legal aid?
Financial Eligibility Test
Merits Test
What is the Financial Eligibility Test for civil legal aid?
Depends on the individual circumstances such as income, savings, family circumstances etc
What is the merits test for civil legal aid?
It must appear the the claim has good prospects for success.
What are the limitations to civil legal aid?
Only available in very limited circumstances (e.g housing disputes, family and debt issues)
Can civil legal aid be withdrawn?
Yes if there is a change to the merits of the case and the opponent may rise concerns about the conduct.
Can a legally aided party be forced to pay costs?
No not theirs or the other sides costs
What is criminal legal aid?
Defendants in criminal cases can apply for public funding of their costs.