Legal Services IV: Funding Options for Legal Services
Description
An extensive overview of various funding options for legal services, primarily focusing on the obligations of solicitors in the United Kingdom regarding transparency and costs. Key funding methods discussed include the Private Retainer, which involves upfront or periodic client payments, and Legal Aid, which is criminal and civil financial support for those unable to afford representation, dependent on strict means and merits tests. The text also explains Conditional Fee Arrangements (CFAs), known as "no win, no fee" agreements that include a success fee, and Damages Based Agreements (DBAs), where the solicitor receives a percentage of the recovered damages, both of which are heavily regulated by fee caps. Furthermore, the source examines Legal Expenses Insurance, split into Before the Event (BTE) and After the Event (ATE) coverage, and Third-Party Funding, where an external entity finances litigation for a share of the proceeds. Throughout the document, the SRA Code of Conduct and Transparency Rules are emphasized, mandating that solicitors must provide clear, forward-looking cost information to clients or face severe repercussions.




