Chapter 4

Question 1

What is the general rule in litigation regarding funding? Who pays?

Answer 1

The looser pays twice. Meaning the loosing party pays the winners fees.

Question 2

What are the different types of funding?

Answer 2

1. CFA’s - condition fee agreements
2. DBA’S - damage based agreements
3. Fixed fee and hourly rates
4. Third party funding such as crowd funding.
5. Legal aid in exceptional circumstances

Question 3

What’s the difference between a CFA and a DBA?

Answer 3

CFAs are calculated upon the hours of work put into the case. I.e your hourly rate is uplifted by 50% if you win. Whereas DBAs are a percentage of the damages awarded.

Question 4

What is the maximum uplift on a CFA?

Answer 4

Cannot exceed 100% and cannot exceed 25% in personal injury.

Question 5

What is the maximum percentage you can get when damages are awarded in a DBA?

Answer 5

25% in personal injury and 50% for other claims (except employment).

Question 6

What is crowd funding?

Answer 6

Funding of projects from multiple investors generally over an online platform.

Question 7

What two circumstances may legal aid be granted?

Answer 7

1. Home at immediate risk of sale or repossession
2. Eviction from their home (bankruptcy)