Access to justice - economic issues Flashcards
1
Q
What is time billing? 2
A
- lawyers work hours billed to clients, most often in 6-minute increments or hourly
- does not include other matters such as professional development and office management which are non-billable
2
Q
What is a flat fee?
A
- an agreed upon cost for a legal service, they charge one total fee in exchange for the service
3
Q
What is no win no fee?
A
- you only have to pay your lawyer if they win the case
- also known as conditional costs agreements
- however there are still other costs required to pay including disembursments, such as for photocopying, medical report fees, court fees, barrister’s fees etc.
4
Q
pros and cons of no win no fee 3
A
- an uplift fee may be required on top of the other disumbersment fees, uplift fees are usually described as a percentage of the legal fees charged
- the client doens’t have to pay any upfront fees
- it takes the burden/risk off the client in paying expensive lawyer fees
5
Q
What is a contingency fee?
A
- arrangments made for lawyers to receive a percentage of the monetary amount a client obtains when they win or settle a case
6
Q
Pros and cons of contigency fees
A
- there could be increased pressure to settle a case to receive the monetary benefits even if it may not be in the best interests of the client
- the client doesn’t have any upfront fees to pay
- no hourly fees
- lawyers are incentivised to work hard so they will win and receive monetary benefits
- could end up having high percentage payments, up to 40% which means the client receives less compensation
7
Q
Pros and cons of a flat fee 4
A
- provides the client with predictability and assurance in knowing how much they would have to pay so they can budget properly
- sometimes the estimated fee may be inaccurate and the lawyer is working more but not getting paid enough
- effective for certain services such as producing a will or contract
- potential for over/under charging
8
Q
Pros and cons of time billing 4
A
- good for the lawyer in ensuring they get paid for all the hours/minutes they work for the client
- can cause lawyers to stretch out the tasks so they can bill more hours (quantity over quality)
- makes the process more stressful for the client in not knowing how much they will be paying
- lawyers have to ensure they track time consistently and accurately
9
Q
What is a class/representative action?
A
- indivdual clients are grouped together in a shared action against a common defendant, usually a major corporation which has caused some injury to hundreds or thousands of people
10
Q
What is alternative dispute resolution?
A
- the resolution of disputes outside of court
- lawyers have an obligation to inform clients of potential alternative means before going to court
- the legal system considers the preservation of family and relationships to be important and this gives them a better option to do this
11
Q
Pros and cons of a class action 3
A
- costs millions of dollars to investigate and pursue which is only recoverable if and when the claim is successful
- victims of corporate negligence or delinquencey would appreciate the opportunity to recover some compensation that would otherwise not be avaliable to them
- there are competing interests such as if someone is content with settling for $10 each but others want $1000
12
Q
Ethical issues that can arise in a class action 3
A
- conflicts of interest between litigation funders and applications
- disproportionate risks and cost burdens on the representative of the plantiff
- funders can’t get recompensated fo rhte costs and risks they incurred
13
Q
What is legal aid?
A
- a commission that provides free legal information, provides advice and legal representative services
14
Q
Pros and cons of legal aid 5
A
- funded by the state, but underfunded
- getting eligibility for legal aid is extremely difficult to attain with the strictness of passing the means, merit and matter test (merit - reasonablity of the success of the case, means - income and assets, matter - criminal/civil etc.)
- 98% of legal aid recipients receive an income that could be considered below the poverty line however don’t pass the tests
- the funding is not meeting the demand and so the test has become stricter to reduce those eligible
- if eligible they may be helped by a lawyer or receive funds to pay for a private lawyer
15
Q
Explain a bit about community legal centres 3
A
- independent ngos with a focus on advice, workign with other agencies to address legal, financial, social and health problems
- services include advice, referral and some limited representation in special cases, they also research legal problems for the purpose of law reform and community legal education
- funded by the government
