Legal Services

Question 1

A client is contemplating entering into a conditional fee agreement with a solicitor to fund a professional negligence action against another solicitor. Additionally, the client wishes to enter into an after the event insurance policy.

Which of the following best describes what the after the event policy will cover?

Answer 1

The disbursements and the other side’s solicitor’s costs in the event the claim is unsuccessful.

If the claim is unsuccessful, the after the event insurance policy will cover disbursements and the other side’s solicitor’s costs. Disbursements are expenses incurred by the solicitor to progress the claim, such as experts’ reports, court fees, medical records, and so on. After the event policies also cover the risk of having to pay costs to the other side if the client’s claim is unsuccessful.

Question 2

What is typically payable by the insurer under an ‘after the event’ insurance policy?

Answer 2

Disbursements - expert reports/court fees.
Costs incurred by the other party if claimant is unsuccessful.

Claimant’s solicitors costs typically NOT included.

Question 3

For how long must a firm keep client due diligence records?

Answer 3

For 5 years after the end of the relationship with the client.