Client Care And Costs

Question 1

What level of service is expected from a solcitior?

Answer 1

Competent and deliver in timely manner. Must maintain competence to carry out role and keep professional knowledge up to date

Solicitor must consider and take in account the clients attributes, needs and circumstnaces.

Question 2

What responsibilities does the solicitor have to the client?

Answer 2

Keep client informed of progress
Seek clients instructions where required
Solicitor must not issue proceedings without authority of insurer

Question 3

What information on costs must be given?

Answer 3

Solicitor is obliged to provide clients with the BEST POSSIBLE INFORMATION about how their matter will be proceed - at time of engagement and when appropriate as matter progresses.

Question 4

If a precise cost figure is not possible, what must the solicitor explain?

Answer 4

Explain WHY the precise figure is not possible, and agree either:

A ceiling figure, in which the solicitors costs cannot go above,

Or a review date, where the parties revisit the costs position.

Question 5

What are the cost issues in litigation?

Answer 5

There is the risk of having to pay someone else’s legal fees. In litigation, the client may be ordered to pay some of the costs of the winning party.

Question 6

What is needed in a client care letter ?

Answer 6

Information which must be passed to the client at the start of the matter.

Rules and regulations

Costs

Complaints procedure.

Question 7

What is the consumers contracts regulations 2013?

Answer 7

Solicitors need to ensure that they comply with the consumers contracts regulations.

Distinguishes between on-premise and off-premise contracts.

Specify that certain pieces of information must be provided to clients before they enter into the contract.

Question 8

What is contentious business?

Answer 8

Business done for the purpose of proceedings in a court

Litigation. Basically

Question 9

what is non-contentious business?

Answer 9

Any other business that is not litigation proceedings.

Question 10

What are the available options for solicitors fees?

Answer 10

Hourly rate

Fixed fee

Variable fees

Question 11

What is a fixed fee?

Answer 11

A solicitor agrees with the client to complete the word for a fixed fee, or a fixed fee plus VAT and disbursements.

Question 12

What are variable fees?

Answer 12

Solicitor is permitted, in certain situations, to charge a fee, which VARIES according to the outcome of the matter.

Question 13

What are the examples of variable fees?

Answer 13

CFA - conditional fee agreement
DBA - damage based agreement

Question 14

What is a CFA?

Answer 14

Non win, no fee.

Popular in personal injur.

The solicitor may agree to charge nothing if the client owes, but will charge their fee, PLUS an agreed “uplift”, or “success fee”, in the event of success

Question 15

What is a DBA?

Answer 15

Provides that if the client recovers damages, the solicitors fee is an agreed percentage of those damages.

Question 16

What are the formalities for a CFA?

Answer 16

Must be in writing, signed by both solicitor and client, and where a success fee is to be paid, specifically the percentage of the success fee.

Question 17

What is the maximum success fee?

Answer 17

10% uplift iin the normal hourly charge rate.

Cap at 25% in personal injury cases of general damages recovered.

Question 18

If a client LOSES, what must the client still pay in a CFA?

Answer 18

They will usually have to pay the disbursements, such as court fees, barristers fees, and VAT.

They may also have to pay the opponents costs.

Question 19

What is the maximum amount for DBA?

Answer 19

Must NOT be a move 50% of the sum of damages recovered by by client (including VAT in this percentage).

Question 20

What formalities need to be completed with in respect of the solicitors bill?

Answer 20

Bill must contain enough information for the client to be satisfied that the bill is reasonable

Bill must be signed by the solicitor or on the solicitors behalf, by an employee authorised to do so.

Bill must be delivered by hand to the client, by post to clients home, or by email if this is AGREED.

Question 21

What are interim bills?

Answer 21

Solicitor may wish to bill client for work DONE, before matter has been completed.

Question 22

What are the 2 different tpes of interim bills?

Answer 22

Statute bills

Bill on account

Question 23

What is an interim statute bill?

Answer 23

Comply with the provisions of the Solicitors Act 1974.
They are self-contained final bills, in respect of the work covered by them.

Question 24

What are interim “bills on account”

Answer 24

These are request for payments on account of the final bill, which will be delivered at the end of the matter

MORE popular that statute interim bills.

Question 25

What is the benefit of an interim bill on account?

Answer 25

It does not need to represent the final figure for costs.

Question 26

What is the disadvantage of an interim bill On account?

Answer 26

Unlike with an interim statute bill, a solicitor is UNABLE to sue client for non-payment of the bill.

Question 27

What is the interest on bills in non-contentious matters?

Answer 27

Non contentious: solicitor may charge interest on the WHOLE or OUTSTANDING part f unpaid bill, with effect from 1 month after delivery of bill.

8%

Question 28

What is the interest on bills in contentious business?

Answer 28

Solicitor may charge interest on an unpaid bill, where the solicitor expressly reserves this right in the retainer, or the client later agrees.

Question 29

Can the client challenge the bill ? What are the 2 ways?

Answer 29

Yes

By the court

Through complaint procedures

Question 30

How can the client challenge the bill through court?

Answer 30

Client must apply within 1 month from the date of delivery.

Can apply within 12 months, but will require leave of the court.

Costs officer will assess it.

Costs will be assessed on an indemnity basis, and allow only costs that have been reasonably incurred by the solicitor and which are reasonable in amount.

Question 31

In non contentious proceedings, what will the court regard to assess if the costs are reasonable?

Answer 31

Complexity of matter
Specialised knowledge and skill involved
Time spent
Number and importance of Documetns prepared
Place and circumstances
Amount or value of any money or property involved
If any land is registered
Importance of matter to client
Approval of entitled person

Question 32

In contentious proceedings, what will the court regard to assess if the costs are reasonable?

Answer 32

Conduct of parties
Amount or value of any money
Importance of matter to parties
Complexity of matter
Skill and knowledge involved
Time spent on case
Place where and circumstances in which work was done

Question 33

What is the firms complaints procedure?

Answer 33

Solicitors must ensure that clients are informed in writing about it.

Legal ombudsman, may limit solicitors fees, or remit all or part.

Question 34

To be enforceable , what must be done for non contents agreement and solciitors remuneration?

Answer 34

S 57 of solicitors act 1974.
Be in writing
Signed by client
Contain all terms of agreement

Question 35

To be enforceable , what must be done for CONTENTIOUS agreement and solciitors remuneration?

Answer 35

May be gross sum, hourly rate or salary.

Cannot be remunerated by contingency fee

Agreement must STATE it is a contentious business agreement
Must be in writing
Must be signed by client
Msut contain all the terms