Legal Services Flashcards
What is the SRA requirement regarding indemnity insurance for firms?
Insurance must be adequate and proportionate in relation to the firm and the clientele they have. SRA outlines a minimum coverage of £2mil or £3mil per claim depending on the legal structed of the regulated entity
What is the SRA requirement for insurance for freelance solicitors?
If carrying out a reserved legal activity, a freelance solicitor must have the following requirements:
3 years PQE
No hold any client monies
Insurance must be adequate and proportionate
Freelance solicitors do need the minimum term of insurance set by SRA, but must notify SRA that they are freelance.
What is the SRA requirement for insurance for solicitors in non-commercial bodies i.e charities?
Solicitor must ensure that the body takes out adequate and appropriate insurance
What is private retainer/private funding in non-litigation matters?
It is when a client pays for legal representation themselves, forming a fee arrangement as part of the contract with their solicitor.
What is fixed fee financing in legal services?
It is an agreement between the solicitor and client at the outset for a set fee, often used in domestic conveyancing and other practice areas.
Describe a conditional fee agreement.
Known as “no win, no fee,” it allows clients to avoid paying fees if unsuccessful but pay standard fees (usually recoverable from losing party) and a success fee (usually from client at a agreed percentage) if they win.
What is a damages-based agreement?
If successful, the solicitor receives a percentage of the damages awarded; if unsuccessful, the solicitor receives no payment
What does third-party funding entail in litigation?
A third party covers legal costs and disbursements, often for a percentage profit, but not the opponent’s costs.
What is “before the event” insurance?
“Before the event” insurance is purchased in advance, often part of car or home insurance, covering solicitors legal costs. Usually associated with ‘no win, no fee’ arrangement.
What is “after the event” insurance?
“After the event” insurance is taken post-incident to cover disbursements and opponent’s costs if the claimant loses. Usually associated with conditional fee arrangement
What is union cover in legal funding?
Union members may receive legal expenses coverage as part of their union subscription
What are the two main tests for eligibility under Civil Legal Aid?
The financial means test (based on income, savings, and living costs) and the merits test (determining good prospects for success).
