Unit 4: Funding Legal Representation

Question 1

Definition: Private Funding (what is being paid, how is this calculated)

Answer 1

• The solicitor’s fees are calculated according to the time spent on the case at a given hourly charging rate (disbursements and expenses are charged separately).

Question 2

Process for a client challenging a bill

Answer 2

In most cases this may involve asking the court to assess the costs. The court will reduce the bill if the amount charged is unreasonable. This is an obvious restraint on the amount that a solicitor can charge.

Question 3

If a costs officer reduces the amount of a bill that has been challenged - when must the SRA be informed?

Answer 3

If the bill is reduced by more than 50%

Question 4

Does a solicitor have an obligation to offer a client alternative funding options (ie. legal aid)

Answer 4

No - But, solicitor should make them aware and direct them to seek separate advice on their availability (ie. if client qualifies for legal aid but solicitor does not carry out legal aid work)

Question 6

Two categories of civil legal aid

Answer 6

1. Controlled work: it is for the solicitor to determine the client’s eligibility
2. Licensed work: must be authorised by LAA on a case by case basis

Question 7

DEF: Legal Help

Answer 7

This covers the solicitor giving basic advice and limited steps following on from that advice. This might involve drafting a letter or obtaining information from a third party. It does not extend to issuing court proceedings. Legal Help is controlled work.

Question 8

DEF: Help at court

Answer 8

covers advice and assistance, including advocacy.
- The work which the solicitor carries out must be in relation to a particular hearing rather than representation in the case generally.
- Controlled work

Question 9

DEF: Legal representation

Answer 9

Legal Representation is available to a client who is a party to proceedings or who is contemplating starting proceedings. It can cover the conduct of the client’s case, if necessary, up to and including representation before the court.

• It is licensed work, application must be made to the LAA and if successful, a LA certificate will be issued

Question 10

Two bases which legal representation (under LA) can be granted under?

Answer 10

1. Investigative basis: solicitor’s work assessing strength of the case
2. Full basis: covers issuing and conduct of proceedings including advocacy at final hearing

Question 11

Tests required to qualify for legal aid

Answer 11

1. Merits Test (varied based on type of LA claimed)
2. Financial Needs Test

Question 12

Merits Test: Legal representation

Answer 12

• Client’s prospect of success must not be less than 50%
• Balancing of likely damages recoverable and costs that will be incurred (monetary claim)
• Whether benefits to be gained justify the likely cost that a reasonable privately paying client would be prepared to proceed (non-monetary claim)
• Funding will not be granted if other funding is available for client (ie. insurance) or if case is suitable for a CFA

Question 13

Merit Test for Legal Help and Help at Court

Answer 13

Sufficient benefit test (must be sufficient benefit to client to justify the work)

Question 14

Capital limits to qualify for civil legal aid

Answer 14

• 8000
• 3000 for immigration cases

Question 15

Means Test: Civil Legal Aid Steps

Answer 15

1. Look at Capital Limits
2. Is client in receipt of benefits
3. If no to 2, examine gross income

Question 16

If a client is not on welfare benefits - what must their gross income be to qualify for leal aid?

Answer 16

2 657 or less

Question 17

What must disposal income be less than to qualify for civil legal aid under the means test?

Answer 17

733

Question 18

When will a client be deemed to be able to ‘pay something’ towards their legal costs

Answer 18

• Licensed Work: this is if the monthly disposable income is above 315 or their capital above 3 000 (they will need to make a contribution)
• income contribution will take the form of monthly payments

Question 19

What is the statutory charge and when does it arise?

Answer 19

For the statutory charge to arise the client must have been wholly or partly successful in the proceedings, or obtained an out- of- court settlement which resulted in the client gaining or keeping money or property. Usually (but not invariably) the client must have been in receipt of Legal Representation.
- the statutory charge is money received from the case which can be used in repayment of the solicitor’s fees (recouping LA money)

Question 20

Who is entitled to free legal advice if brought to the police station?

Answer 20

Anyone attending at the police station (whether under arrest, or attending voluntarily) is entitled to free legal advice, irrespective of their means. The solicitor will claim for the work done under the Police Station Advice and Assistance Scheme. The solicitor will receive a single fixed fee regardless of the nature of the case or the time actually spent.

Question 21

If a solicitor provides free legal advice at a police station - how can they claim for the work done?

Answer 21

The solicitor will claim for the work done under the Police Station Advice and Assistance Scheme. (single fixed fee for this)

Question 22

Criminal Legal Aid: Must every client satisfy the interests of justice test to be eligible:

Answer 22

The client will automatically satisfy the test if:
- they are under the age of 18; or
- the case is going to the Crown court

Question 23

Criminal Legal Aid: who does not have to take the means test

Answer 23

Those with an adjusted income of 12 475 or less (in MC or CC)

Question 24

Criminal Legal Aid: Threshold below which the disposal income must fall to be eligible (MC)

Answer 24

£3,398

Question 25

Criminal Legal Aid: Threshold below which the disposal income must fall to be eligible (CC)

Answer 25

if a client has a disposable income of more than £3,398 and less than £37,500, the means test may determine that the client can afford to make some contribution towards their legal fees, whether from income or capital, and legal aid will be offered to the client on that basis.