Legal Services Flashcards
Reserved legal activities
- Exercise of a right of audience
- Conduct of litigation
- Reserved instrument activities
- Probate activities
- Notarial activities
- Administration of oaths / taking affidavits
How to determine the professional indemnity insurance?
- SRA sets out the minimum coverage that the firms must purchase.
- Firms must also ensure that the insurance coverage is adequate and appropriate.
What are the factors in determining the adequate and appropriate coverage for indemnity insurance?
- Type of clients.
- Value of matters taken each year.
- Claims history.
- Transparency of information provided to the clients about insurance coverage.
Can a freelance solicitor carry out reserved activities without being authorised as a sole practitioner firm?
Yes, but:
1. 3 years post qualification.
2. Must not hold client money (with minor exceptions).
3. Must take out and maintain adequate and appropriate insurance.
They do not need to purchase insurance on SRA’s minimum terms but need to notify the SRA that they are acting as a freelance solicitor.
What are the obligations re indemnity insurance of solicitors in non-commercial bodies who provide reserved legal activities to the public?
The solicitor must ensure that the body takes out and maintains adequate and appropriate indemnity insurance.
Who oversees the conduct of all lawyers in England and Wales?
The Legal Services Board.
Solicitor’s obligations re funding litigation
- Transparent and clear about the costs;
- At the beginning of the case, the solicitor should inform the client of the likely costs;
- Update the client about the coats throughout the case and keep notes of any relevant discussions;
- Explain and advise about the relevant funding mechanisms.
What is a conditional fee agreement?
“No win, no fee agreement.”
- Unsuccessful claim: no payment of solicitor fees; defendant’s costs and expenses.
- Successful claim: solicitor’s normal fee (usually cam be collected from the losing party, together with disbursements) plus a success fee from the client (agreed as percentage of the solicitor’s normal fee)
What are the limitations in using the conditional fee agreement?
- Cannot be used in family proceedings.
- The success fee cannot exceed 100% of the normal fee charges.
What is a damage fee agreement?
Unsuccessful claim: the solicitor is not entitled to any fee or repayment of disbursements.
Successful claim: the solicitor will be entitled to a specified percentage of the client’s award (the solicitor’s standard time costs can be recovered from the losing party along with disbursements).
What are the limitations in using damages based agreements?
- In a personal injury case, the legal costs payable under the agreement cannot be more than 25% of the sum recoverable, excluding future losses.
- In a non-personal injury case, the sum payable cannot be more than 50%.
What must a damages based agreement include?
- The claim to which the proceedings relate;
- The circumstances in which the legal representatives’ costs and expenses are payable;
- The reason for setting the payment at that level;
- The expected disbursements, giving an appropriate amount.
- A definition of success;
- What happens in the event adverse costs are awarded;
- How the parties can terminate the agreement.
What is a third-party funding?
A third party covers the cost of legal fees and disbursements (including barrister’s fees, court fees, and after the event insurance).
It does not cover the other side’s costs.
Before the event insurance
- Covers solicitor’s legal costs.
- Often requires the insured party to use a designated solicitor.
After the event insurance
- Covers disbursements.
- Most after the event policies also cover the risk of having to pay costs to the other side if the claimant is unsuccessful.
