Funding Options Flashcards
(43 cards)
What is a retainer
Contractual relationship between solicitor and client
What are costs
Fees and disbursements
What should you do if you think your client is eligible for legal aid work but you don’t offer legal aid
You must advise them to go elsewhere
What info about costs should you provide to your client and when
Provide the best possible information about pricing at engagement and as the matter progresses
What SRA principles would be breached by overcharging
Integrity
Best interests
What if a court assessed a bill and reduces it by more then 50%
Must inform SRA
When will a client still pay their own fees even though their opponent was ordered to pay them
When the opponent is bankrupt or ordered to pay less than the full amount so the client pays the difference
When to discuss before the event insurance
Ask your client to bring their policies and those of their spouse or partner to the first meeting
Can you use any solicitor if you rely on BTE insurance
Yes even where the insurer wants to use theirs
Can you use BTE and ATE insurance together
Yes
Can ATE insurance be obtained for all cases
Not for family law but most other civil matters
What does ATE insurance usually cover
Opponents costs and disbursements
What do you pay for ATE insurance
Always pay premiums no matter what the outcome of the case is because these are not recoverable from the other side
When does ATE insurance pay out
Only pays out at the end of the case even if client is required to pay through the case in installements
Can you always rely on a BTE insurance policy
No the insurer must first accept the claim
What is private funding
Fee earning and hourly rate
Clients responsible for fee no matter what the outcome
Disbursements and expenses in addition to hourly rate
What is a conditional fee agreement
Pay a success fee (percentage increase in normal fee) which cannot exceed 100% and 25% cap of damages for personal injury
Must be a civil matter (not family) in writing and state success fee
No need to show inability to fund In other ways
Opponent never pays success fee
Conduct risk assessment to calculate success fee. Give advice on how this was arrived at
If they lose won’t pay fees but still pay disbursements and opponents fees - ATE insurance
What is a damage based agreement
Contingency fee- percentage of damages
Cap of 50% of damages incl VAT and counsel fees but excl. other disbursements
25% cap personal injury and 35% cap employment
Costs payable by opponent are set off against contingency fee and client only pays balance
If they lose no fees but pay disbursements and opponents costs - ATE insurance
No cap for appeal proceedings
In writing, specify proceedings it related to, when payable and reasonable for setting fee at that level.
Do you still pay continence fee in DBA if you settle and terminate agreement early
Yes
Third party funding eg trade union
Someone with no connection funds case in return for fee payable from money won at end
Not for personal injury or consumer cases
Unlikely to take it on if you would be left with less than 50% of damages after deduction of fee
Need good chance of success
3rd party may have to pay opponents costs if you lose
Fixed fee
Charge known at outset
Must complete work even if unprofitable
Cannot be altered later unless client agrees
Non contentious business agreement
Solicitor gets sun, percentage, commission, salary or otherwise
In writing signed by clients and incl all terms
State if disbursements and VAT are separate
Client cannot ask court to assess bill but may set aside if unreasonable
Contentious business agreement
Solicitor gets sun or salary etc
Cannot be a contingency fee
State it is a CBA, in writing, signed by client, contain all terms
Cannot apply to court for assessment unless it is an hourly rate but court can set aside if unreasonable
Can all firms do LA work
No firm must have contract with LAA covering relevant type of work
