Funding for Legal Services Flashcards
(48 cards)
What are the funding options for legal services (6)
- Conditional fee agreement
- Damages based agreement
- Fixed fees
- Third party funding
- Legal expenses insurance
- Legal aid
What is a written retainer?
Terms and conditions
Contract between solicitor and client
What should a retainer include?
Terms of services
Work to be undertaken and completed
How the work will be charged and paid for
What is private funding?
C pays fees themselves
Personally responsible
Fees/disbursements
Calculated on hourly rates
How is time recorded for private costs?
In units - 6minutes per unit
What do solicitors need to provide to clients about costs?
Estimated costs info at the start
Updated throughout if costs change
Open opened
Can be fixed fees
What happens if a solicitor deliberately over charges?
Breach their professional conduct
What are fixed fees?
Agreement to complete work for a fixed fee. Cannot be changed at a later date unless client consents
What is a conditional fee agreement?
Agreement only paid in certain circumstances.
C only liable to pay if c wins case.
What is the fee payable under a CFA?
Success fee plus solicitors costs
What is a success fee?
A percentage of a solicitors usual hour rates
What can the success fee not charge?
Cannot exceed 100% of solicitors charging rate
How is a success fee set?
According to the risk of the case
What is the cap of the success fee in PI cases?
25%
Who is always liable for payment for the success fee?
The client
Under a CFA is a client still liable to pay other sides fee if they lose?
Yes
But obviously they don’t pay their costs or success fee!!
What must a solicitor ensure for CFAs enforceable?
The success fee cost in writing
Not be over 100%
Or
25% for PI Claims
If the success fee isn’t in writing what happens?
Deemed unenforceable & client does not have to pay the solicitors costs
What is a damaged based agreement?
An agreement that a solicitor will receive payment for the services ONLY if the client is successful and the client obtains damages.
Solicitor chooses percentage and that percentage is used against the damage fee.
If a clients case is unsuccessful on a damage based agreement would they need to pay their solicitors fees?
No
If a shortfall is found after the other side has paid their costs under a damage based agreement does the c pay the shortfall?
Yea
What is the CAP for damage based agreements?
50% of damages recovered
25% PI Cases
35% employment cases
For damage based agreements to be enforceable what is needed?
Must be in writing outline the fee payable and the agreement as to why dba has been set
As CFAs & DBA don’t include disbursements or other sides fees what else is available?
Legal expense insurance
