Legal Funding for Legal Services

Which of the following is not a Legal Funding Agreement ?

• CFA - Conditional Fee Agreement

• DBA - Damage Based Agreement

• Private Retainer

• ATE insurance

• CBA - Conditional Based Agreement

Your firms has a marketing campaign with an emphasis on completing their services on a "No-Win, No Fee basis" with CFA's available for all clients. Should you put all of your new clients on CFA's as they instruct you ?

• Yes, put all clients on CFA's, you don't want to contradict your firms marketing message.

• No, you should give your client the best possible information about legal funding arrangements and then obtain instruction on which funding agreement suits the client.

• Yes, CFA's are always the most beneficial legal funding agreement for a client.

• None of these options

Which paragraphs of the Individuals Code of Conduct do Solicitors have to comply with when advising on legal funding ?

• Paragraphs 8.10 & 8.11

• Paragraphs 8.1

• Paragraphs 8.6 & 8.7

• Paragraphs 8.4 & 8.5

According to 8.7 of the Code of Conduct, which changes on a matter would engage you continuing professional duty to notify the client ? (multiple choices)

• change of fee-earner

• VAT changes

• changes to nature and cost of disbursements

• changes to fee-earner hourly rate charged

• change of accounts manager at the firm.

After making a reasonable request for a payment on account of costs and then the client failing to pay within a reasonable period of time, what does s.65(2) of the Solicitors Act 1974 give the instructed solicitor the authority to do ?

• Keep the file open until the client decides to get back in touch.

• Withdraw the retainer with the client.

• Pass the file to another solicitor within the firm.

• Write to the client again until you get a response.

What is a CFA as defined by Court & Legal Services Act 1990 ?

• An agreement with a person to providing legal services conditional upon payment in advance.

• An agreement with a person to providing legal services which provides for his fees and expenses to be payable in specified circumstances.

• An agreement with a person to providing legal services conditional upon that being on a pro-bono basis.

• An agreement with a person to providing legal services which provides for his fees and expenses to be payable in all circumstances.

When is a success fee as part of a CFA payable ?

• When you lose your case.

• When you win your case.

• When you discontinue your case before the listed Trial date.

• None of these options

A solicitor has a valid and enforceable CFA with their client, the claimant is involved in an accident at work. The CFA provides for a 25% success fee, calculated after a careful risk assessment of the client's matter. The client wins at Trial and the District Judge awards her £50,000 in damages. Will a success fee be payable and if so what amount would be payable by the client in respect of the success fee ?

• Yes the success is payable £25,000

• Yes the success is payable £15,000

• Yes the success is payable £10,000

• Yes the success is payable £12,500

• No success is payable.

A Solicitor and Client enter into Damage Based Agreement capped at 50% of the damages recovered. Client recovers £200,000 in damages and £60,000 in legal costs. How much would the Client receive and how much would the Solicitor be paid ?

• Client receives £100,000

  Solicitor receives £160,000

• Client receives £160,000

  Solicitor receives £100,000

• Client receives £130,000

  Solicitor receives £130,000

• Client receives £200,000

  Solicitor receives £60,000

Which statement about how DBA's operate is incorrect ?

• The cap on a DBA recovery rate for a personal injury matter is 25% of sum recovered by client (net of care claims & welfare benefits payable to DWP).

• The cap on a DBA recovery rate for a personal injury matter is 75% of sum recovered by client (net of care claims & welfare benefits payable to DWP).

• The cap on a DBA recovery rate is 50% of sum recovered by client for all civil matters other than Personal Injury & Employment matters.

• The cap on a DBA recovery rate for a employment matter is 35% of sum recovered by client (net of care claims & welfare benefits payable to DWP).