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Managing Client's Relationship: The 3 Cs Flashcards

1
Q

What do the ‘three Cs’ stand for?

A
  1. Customer due diligence
  2. Client care letter
  3. Conflict check
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2
Q

Can you accept a client’s instruction if it means you would be breaching the law?

A

No

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3
Q

Would you be able to accept your client’s instructions if it leads to a conflict of interest with another client?

Why?

A

No because you would be breaching CCS

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4
Q

What is Principle 1 of the Codes, in a nutshell?

A

Act in a way that upholds constitutional principle of law

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5
Q

What is Principle 2 of the Codes, in a nutshell?

A

Act in a way that upholds public trust and confidence in solicitors’ profession

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6
Q

What could providing a ‘competent service’ look like according to CCS 3.2?

A

Declining providing a client service on a property matter when you are a corporate lawyer

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7
Q

What could providing a ‘timely service’ look like according to CCS 3.2?

A

Referring a new client to someone else in your team after acknowledging you may be too busy to provide service in a timely manner

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8
Q

How can you ensure you are authorised to act on your client behalf in the scenario of advising a married couple?

A

Ensuring that you have confirmation in writing from both spouses that they are happy for me to act on their behalf

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9
Q

Are you allowed to act on your clients behalf when receiving instruction from client only?

A

No - you can act on your client’s behalf if there is someone ‘properly authorised to provide instructions on their behalf’ according to CCS 3.1

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10
Q

Can you decline acting for a client if you believe that the instructions given do not represent the wishes of your client?

A

No - you cannot act

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11
Q

What does the key SRA Principle and CCS that governs diversity say?

A

Principle 6 - act in a way that encourages equality, diversity and inclusion

CCS 1.1 - Do not unfairly discriminate by allowing person views to affect personal relationships

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12
Q

What are the names for the two types of conflict of interest?

A
  1. Own interest conflict (CCS/CCF 6.1)
  2. Conflict of Interest (CCS/CCF 6.2)
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13
Q

What are the two exceptions available for acting even where there is a ‘Conflict of Interest’?

A
  1. 6.2a Where clients have ‘substantially common interest’
  2. 6.2b When clients are ‘competing for same objective’
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14
Q

TRUE OR FALSE

Significant risk of a conflict of own interest or conflict of interest is insufficient

A

False - it is sufficient to pose a conflict of interest

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15
Q

What are some areas that could give rise to ‘conflict of own interest’?

A
  • Financial interest of yours or someone close to you
  • A personal or business relationship of yours
  • Your role as an employee
  • Your won conduct as a firm or individual
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16
Q

What is an example of an ‘own conflict of interest where the interest concerns:

Financial interest of yours or someone close to you?

A

A client asking you to carry out DD on a company you or your spouse owns shares in

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17
Q

What is an example of an ‘own conflict of interest where the interest concerns:

A personal or business relationship of yours?

A

You are asked to advise on a claim against a relative of yours, a friend or where you’re involved in a financial or business enterprise

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18
Q

What is an example of an ‘own conflict of interest where the interest concerns:

Your role as an employee?

A

You are asked for advise in relation to a dispute involving your employer or a fellow employee

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19
Q

What is an example of an ‘own conflict of interest where the interest concerns:

Your own conduct as a firm or individual?

A

Where wrong advice has been given or acted upon a client’s behalf

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20
Q

What does the SRA Glossary define a ‘conflict of interest’ as?

A

A situation where your separate duties to act in the best interests of two or more clients in the same or related matter conflict

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21
Q

What does the SRA Glossary define a ‘own conflict of interest’ as?

A

A situation where your duty to act in the best interests of any clients in the same or related matter conflicts with your own interests related to that or related matter

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22
Q

What is meant by ‘substantially common interest’?

A

A situation where between clients there is a:

  • Clear common purpose
  • Strong consensus on how the purpose is to be achieved
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23
Q

What are the three conditions for the satisfaction of substantially common interest and common shared objective according to CCS>CCF 6.2(i)-(iii)… in a nutshell?

A

i) all clients have given informed consent to you acting
ii) you have put effective safeguards to protect clients CI where appropriate
iii) you are satisfied it is reasonable to act for all clients

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24
Q

Are there exceptions to the rule of not acting where an own conflict of interest arises?

A

No - you must not act, even if there is a significant risk that you may have an own conflict of interest

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25
What are two examples where the exception of a 'substantially common interest' may apply?
1. Two people are buying house together 2. Two clients instruct you on setting up a business together
26
What are the two features within the following scenarios that make the substantially common interest applicable?
1. Clear common purpose 2. Strong consensus on how to purpose will be achieved
27
Where could the 'competing for the same objective' exception apply?
Where two clients are competing to buy a business at an auction
28
Is carrying out a conflict check a requirement according to the Codes for law firms?
Yes
29
What are law firms required to do regarding carrying out conflict checks CCF 2.1?
Law firms need to have systems in place to ensure that there are not any conflicts in place at the outset of the instruction
30
Who should conflict checks be carried out for when taking new instructions?
New and existing clients
31
What three things must a conflict check search be carried out against?
1. Client's name (and parent/subsidiary companies) 2. Client's company no. (and parent/subsidiary companies) 3. Names of counter parties to the matter (check whether your firm is acting for counter parties)
32
What other things may a firm's conflict check extend to, in addition to the three things that should be carried out?
1. Company's name and no. of company being bought (in scenario of company being sold) 2. Names of directors of clients (incl. directors names of parent/subsidiary company) 3. Name of the matter and any target company on these facts
33
Does the SRA require firms to send out client care letters?
No
34
What do firms usually do to ensure that they meet the SRA's requirements in ensuring they set out certain information for clients in writing?
Send out 'client care letters'
35
What are three reasons classified as 'good' in terminating a client's retainer?
1. Not being able to obtain clear instructions from client 2. When acting would break the law or the Codes 3. Where client has failed to pay the bills in some circumstances
36
** TRUE OR FALSE ** Lawyers can terminate their their client's retainer on the grounds of self interest
False
37
What time frame do firms usually comply with CCS 8, of providing information transparently in what they will do for their clients in a detailed client letter?
Usually as soon as is practicable after receiving instructions on a new matter
38
What does CCS 8 require from service providers regarding information on costs?
- Ensure your clients have the best possible information on how their matter will be priced - Ensure publicity relating to your practice is not misleading
39
**TRUE OR FALSE** It is optional for law firms to have a complaints procedure
False - they must have a complaints procedure according to CCS 8.2
40
**TRUE OR FALSE** Lawyers must inform their clients about their complaints procedure in writing
True
41
What must solicitors do if their law firm does not resolve a complaint within 8 weeks from the client's complaint?
They must ensure that the client is informed in writing of their right to complain to the Legal Ombudsman and time frame for doing so
42
To what extent does CCS require legal professionals to inform their clients how their matter will be prices about the likely overall cost of the matter and incurred priced?
To the extent of: - At the time of engagement - When appropriate as their matter progresses
43
When do firms usually send client care letter to their clients?
At the beginning of a matter
44
Do the Codes require you to provided all necessary information for repeat business on agreed terms, each time a new file is opened?
No
45
What are the five components that are likely to make up a 'client care letter'?
1. Confirmation of your client's instructions and options 2. General information on each party's responsibilities 3. Costs information 4. Explanation of who will be dealing with the matter 5. Complaints procedure
46
What are examples of 'contentious work'?
Civil of criminal litigation
47
What are examples of 'non-contentious work'?
- Property and business transactions - Assisting in the administration of a legal estate
48
What is a solicitor required to do regarding funding when exercising their 'duty to act in his/her client's best interests'?
Draw their client's attention to available funding options
49
What are different funding options available to fund legal work?
- Private funding - Professional funding - Before the event insurance - After the event insurance - Third party funding - Community Legal Service - Conditional fee agreements - Damages based agreements
50
**TRUE OR FALSE** Solicitors are expected to look for insurance policies exhaustively
False They are expected to conduct a reasonable and proportionate search to establish whether the client has any funding options
51
Who can provide funding for legal work?
A trade union or a professional organisation
52
What is Community Legal Service (formerly known as Legal Aid)?
Provision of public funds to assist in funding legal service for those who cannot afford it
53
What is the category of funding that a 'no win no fee' agreement comes under?
Conditional fee agreements
54
What is Civil CLS funding subject to?
1. A means test 2. A merits test
55
What happens when a client's case is taken by a solicitor on a CFA 'no win no fee basis' and the client loses?
The client will be liable for their own disbursements and may still be held liable for the other side's costs
56
Is Civil CLS funding available to a company?
Yes, but this is very rare It is generally only available to individuals
57
What types of claims are eligble for Civil CLS funding?
- Children/family disputes - Homelessness - Domestic violence
58
Is the majority of civil legal work eligible for Civil CLS funding?
No
59
Will a client receive funding if their position is insufficiently meritorious?
No
60
What must the client pay if they are successful in their CFA basis case?
- Normal/basic fee - Success fee (of up to 100% on top of normal fee)
61
What must the lawyer's success fee not exceed in personal injury cases?
25%
62
Does the court allow a party to recover the success fee from an opponent?
No
63
**TRUE OR FALSE** The CFA funding option is available to fund solicitors and experts costs
False - it is only available to fund solicitors costs
64
What is another type of funding outside CFA?
Damages based agreements (DBAs)
65
How do DBAs differ from CFAs int he event of a successful case?
The solicitor will be paid a proportion of the damages awarded to their client, instead of normal and success fee
66
What is the max. amount of damages a solicitor can recover in a successful case funded by DBAs in different categories of cases? - Personal injury cases - Employment tribunal cases - Other cases
- 25% in personal injury cases - 35% in employment tribunal cases - 50% in all other cases
67
What is common between CFAs and DBAs regarding disbursements and opponents costs?
These types of funding do not cover disbursement or opponents costs Separate funding arrangements will be needed for these
68
When is 'before the event (BTE) insurance taken out?
Before the need for legal work arises
69
How does BTE insurance cover legal costs?
It 'pays out' to cover the legal work in the event that it is needed
70
Are BTE premiums generally recoverable from the other other side in the event of a successful litigation?
No
71
What does BTE insurance commonly fund, though it can fund any type of legal work?
Litigation
72
**TRUE OR FALSE**
BTE insurance could include disbursements
73
What does 'after the event (ATE)' insurance usually cover the costs for?
- Client's own disbursements - Opponent's costs and sibursements (in the event of client losing their case
74
What other types of funding is ATE used in conjunction with? What does the ATE cover and what do the conjuncted funding cover?
CFA or DBA CFA or DBA cover client's own solicitor's costs and the ATE covers the disbursements and opponent's costs
75
What is ATE's availability subject to?
Depends on the merits of the case and level of cover required
76
Is ATE insurance policy premium recoverable from the other party? What is the one exception?
No Clinical negligence expert reports
77
What type of groups fund 'third party funding'?
- Banks - Private equity firms - Hedge funds
78
When does 'third party funding' provided?
To enable parties to bring their cases to court
79
What happens in the event a claim succeeds using 'third party funding' for the lender?
The funder receives their money back plus an uplift
80
What type of cases is 'third party funding' limited to at the moment?
Commercial cases of high value
81
What are the three main ways of charging a client?
1. Hourly charging 2. Fixed fees (for particular items of work) 3. Unbundled legal services
82
What type of work is the 'fixed fees' charge common for?
- Residential conveyancing - Drafting a will - Representing a client in very small dispute
83
What has happened if someone has automatically passed the 'means test' when trying to qualify for Civil CLS funding at the police station?
They have been 'passported' and do not have to fill in CRM 15 form
84
85
What two categories of people are 'passported'?
1. Defendants under 18 years and/or 2. Those on specific welfare benefits - e.g., Universal Credit, income-based jobseeker's allowance
86
What does the mean test differ based on?
Whether the case is tried in the magistrates court or Crown court
87
How does the 'means test' work if the case is being tried in the magistrates court?
1. Initial assessment to work out their weighted gross annual income
88
Who is eligible for public funding for cases tried in the magistrates court at the stage of the 'means test'?
Weighted gross annual income below 'lower threshold'
89
Who is ineligible for public funding for cases tried in the magistrates court at the stage of the 'means test'?
Weighted gross annual income above upper threshold
90
Who will be required to take a 'full means test' at the stage of the 'means test'?
Those who are between the lower and upper thresholds of weighted gross annual income
91
What is the name of the form associated with the 'full means test'?
Form CRM15
92
What does the 'full means test' establish? What happens following this establishment?
It establishes the 'applicants annual household disposable income' If this^ is below the threshold, they will be funded by the Civil CLS funding
93
What is the applicant asses on during the 'means test' work if the case is being tried in the Crown court?
Applicant is assessed on both income and capital, which includes equity in properties owned by the applicant
94
What point can applicants be required to contribute to any balance towards their defence costs when their case is tried in the Crown court?
After a combined capital and equity allowance of £30,000
95
When will the applicant be ineligible for Civil CLS funding at the 'means test' for cases tried in the Crown court?
If their 'annual household disposable income' is above the eligibility threshold
96
When will the applicant be eligible for Civil CLS funding at the 'means test' for cases tried in the Crown court without any contribution?
If their 'annual household disposable income' is below the threshold
97
When will the applicant be eligible for Civil CLS funding at the 'means test' for cases tried in the Crown court with contribution?
If their 'annual household disposable income' is between the two thresholds
98
What must the applicant do to pass the 'merits test' to demonstrate that it is in the interests of justice for them to be legally represented?
Complete CRM14 - Application for Legal Aid in Criminal proceedings form
99
Which two scenarios do defendants automatically pass the 'merits test' during policing?
1. When they are charged with an indictable offence 2. When they are charged with an either-way offence and sent later to Crown Court
100
What must the defendant provide information in support of for the 'merits test'?
Regarding all or some of the 10 propositions in the CRM14 form
101
What is the purpose of the '10 propositions' in the CRM14 form?
To evaluate whether the matter is so serious/complicated that the defendant could not conduct their own defence
102
List a few of the 10 propositions
1. I will lose my liberty 2. I have been given a sentence that is suspended or non-custodial. If I break this, the court may be able to deal with me for the original offence. 3. It is likely I will lose my livelihood 4. It is likely I will suffer serious damage to my reputation 5. A substantial question of law may be involved 6. I may not be able to understand the court proceedings or present my own case 7. Witnesses may need to be traced or interviewed on my behalf 8. The proceedings may involve expert cross examination of a prosecution witness 9. It is in the interests of another person that I am represented 10. Any other reasons
103
What happens when both the 'means test' and the 'merits test' is passed for a defendant?
They obtain a 'representation order' for court
104
What can a solicitor claim for once a 'representation order' is granted?
- Preparation of documents - Advocacy - Routine letters and telephone calls
105
What happens in the event the defendant fails and does not qualify for Civil CLS funding?
- They represent themselves - Pay privately
106
What happens in the event the defendant fails and does not qualify for Civil CLS funding and charged with an imprisonable offence?
They may consult with duty solicitor who can represent them on one occasion

Professional Conduct (7 decks)

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