Obtaining funding Flashcards
What are different types of funding?
Private funding
professional funding
before the event insurance
community legal services
conditional fee agreements
damages based agreements
after the event insurance
third party funding
What are the solicitor’s duties in relation to funding?
Draw attention to most appropriate types of funding because we act in the client’s best interest
What are solicitor’s duties on before event insurance?
Conduct a reasonable search to establish whether the client has any funding options buy not expected to embark on a treasure hunt for before the event insurance
What is professional funding?
Eg from a trade union
What are some key things in relation to before the event insurance?
The BET premiums are generally not recoverable from the other side should the policyholder be succesfull in litigation
Premiums are often low eg motor insurance to cover accident legal fees - usually 1% of the cover sought
What is community legal service?
Used to be legal aid
provision of public funds to assist in procurement of legal services for those who could not afford it
What are the eligibility criteria for CLS funding in civil litigation?
Generally only available to individuals and rarely to companies
most types of claim relate to family and children disputes, homelessness or domestic violence. Majority of civil legal work is not eligible
If the client’s income is too high and/or the client has too much capital ie savings then they will be ineligible
If the client’s position does not have a lot of merit then they will not receive CLS funded assistance
(these are different for criminal cases - explained in a different element)
What are conditional fee agreements
Fund civil litigation
A no win no fee agreement
If successful the S is paid the normal base fee plus the success fee up to 100% of the normal fee
A party will not be able to recover the success fee from the losing party - success fee will come out of damages
For PI cases - the success fee cannot exceed 25% of damages for pain suffering and loss of amenity
What does the conditional fee agreement not cover?
Only covers solicitor fees
Does not cover - expert fees, court fees, other disbursements
What are damages based agreements?
Another way of funding CIVIL litigation
If successful, the solicitor will be paid a proportion of damages
Max amount is capped at 25% of damages excluding damages for future care and loss in PI cases and
35% in employment tribunal cases and
50% in all other cases
Cannot recover disbursements or opponent costs
What are key points on after event insurance?
Usaully used in combination with a CFA or DBA
Covers the client’s own disbursements and their opponent’s costs and disbursements in the event of losing the case
If this is available will depend on the merits of the case
Premiums can exceed 25% of the insurance cover sought
The premium is not recoverable from the other party except for clinical negligence expert reports
What are key points in relation to third party funding?
If claim succeeds the funder receives the money back plus an uplift
Association of litigation Funders has created a code of conduct which includes:
Promotional literature must be clear and not misleading
Funders must not try to take control or conduct of the litigation away from the solicitor or barrister involved
funders must make sure they have sufficient funds in place to meet their funding commitments
What is unbundled legal services charge?
A solicitor takes responsibility for a very specific task such as prepping a bundle for court rather than representing the client in the matter more generally
