Final Review: Legal Services Flashcards
(11 cards)
What are the reserved legal activities?
- Conducting litigation / appearing in court
- Preparing court documents
- Administering an oath
NOTE: A person acting on their own behalf may do all these things without being regulated by the SRA
What is the minimum level of indemnity insurance a firm should take out, according to the SRA?
ADEQUATE and APPROPRIATE indemnity insurance.
Consider:
- Historic claims experience of the firm
- Value of matters the firm takes each year
What is the minimum level of indemnity insurance a freelance solicitor should take out?
If they are NOT carrying out a reserved legal activity: NONE.
If they are: adequate and appropriate
What is a Conditional Fee Agreement?
If the client wins, solicitor gets:
- Standard rate paid by losing party
- Success fee as % of standard rate paid by client (not more than 100%)
If client loses/nothing recovered, solicitor gets nothing. Client may need to pay opponents costs/disbursements + their own disbursements.
What is a Damages Based Agreement?
If the client wins, solicitor gets % of client’s recovery.
- 25% cap in PI cases
- 35% cap in employment claims
- 50% cap in commercial cases
- D paid solicitor’s normal fee + disbursements
If client loses solicitor gets nothing.
What is “Before the Event Insurance”?
Insurance purchased before the event being litigated occurred (e.g., car insurance)
- Insurer usually agrees to pay the solicitors fee + disbursements if the purchaser has an accident.
- May designate a solicitor to the client. If so, another solicitor should inform the client of the limitation and not accept instruction.
What is “After the Event Insurance”?
Insurance taken out after the event giving rise to the claim.
- Insurer agrees to pay disbursements on client’s behalf + other party’s costs if client loses
- Typically purchased when client has a Conditional Fee Agreement.
When is Civil Legal Aid available to a client?
Client needs to meet:
- Financial needs test
- Merits test (good prospect of success)
NOTE: Only available for housing disputes and a small number of other cases.
When is Criminal Legal Aid available to a client?
Client needs to meet:
MEANS TEST
- Consider household income, savings, other available capital
- U18s + people of Job Seekers allowance + people on Universal Credit automatically qualify
INTEREST OF JUSTICE TEST
- Is D likely to lose their job in found guilty + will they be able to present their own case
Under the FSMA, what activities are NOT considered regulated activities?
- Safeguarding investments as trustee or PR
- Advising an estate on holding/selling shares for the beneficiaries, if no compensation taken
- Advising, arranging, or acting as agent for a client on the purchase/sale of a company
- Introducing a client to someone authorised by the FCA to give financial advise
