Deck 1: Introduction a Modern Litigation Approach Costs Information to the Client and Funding Options

Question 1

Which definition most accurately describes a conditional fee arrangement ('CFA')?

A) A CFA enables a lawyer to share the risk of the litigation with the client by offering a number of variations of 'no win, limited, or no fee' arrangements.
B) A CFA enables clients to select the lawyer who offers them the best option to fund their action.
C) A CFA is available for all clients in litigation and offers more or less risk free litigation for them.
D) A CFA enables the solicitor and the client to enter into a business arrangement that ensures the best possible deal for both.

Answer 1

A

Question 2

Which of these do not form part of the CFA?
The costs of any action that the client needs to consider could include …

A) their solicitor's costs.
B) their opponent's costs.
C) draftsmans' costs.
D) court fees.
E) Experts' fees.

Answer 2

B

Question 3

Which statute governs the implementation of CFAs?

A) The Courts and Legal Services Act 1990 as amended by s.44 LAPSO 2012.
B) The Administration of Justice Act 1999.
C) The Conditional Fee Order 2013.
D) The Senior Courts Act 1981.

Answer 3

A

Question 4

Which is not correct?
Where a client has a CFA with a success fee the solicitor should have explained …

A) the potential liability for his own costs as well as of those of the opponent before the CFA is signed and at regular intervals thereafter.
B) the right to an assessment of costs by the court whenever the solicitor seeks his costs from his client.
C) any interest the solicitor may have in recommending a particular policy or other funding arrangement.
D) that the CFA can be cancelled under circumstances provided in the CFA by the solicitor or the client but if by the client the full success fee may be payable.
E) that the success fee is recoverable from the opponent if the client wins and secures a costs order in his favour.

Question 5

Which is not correct?
CFAs can be used when it is appropriate and possible to do so …

A) between solicitors and their claimant clients.
B) between solicitors and their defendant clients.
C) between solicitors and experts instructed in the action.
D) between solicitors and barristers instructed in the action.

Question 6

The courts have given guidance on the level of success fee payable by a client in a CFA personal injury action. Which of the following is the correct level of success fee?

A) 25% of base costs.
B) £35% of the damages awarded.
C) 100% of base costs.
D) Any fee is allowable provided it is reasonable and proportionate to the amount recovered
E) Up to 100% of base costs but that figure cannot exceed 25% of the damages awarded excluding future care claims and net of benefits received

Question 7

DBAs are now permitted in civil litigation. Which statement is incorrect?

A) The DBA Regulations 2013 provide for a solicitor's costs to be capped at 25% of the damages recovered in PI claim excluding damages for future care and
B) The DBA. Regulations provide for a solicitor's costs to be capped at 50% of the sum recovered in all non PI claims excluding employment matters
C) DBAs can be entered into by both claimants and defendant
D) Vat is included in the cap but not disbursements save for counsel's fees.

Question 8

Assume that a CFA with a success fee has been entered into between a client and his solicitor. Which of the following courses of action is correct?

A) The opponent should be notified of the existence of the CFA with success fee as soon as proceedings have been commenced by sending a copy of the CFA to the opponent.
B) If proceedings have already been started the party with the CFA with success fee must notify his opponent by filing and serving Form N251 within 7 days.
C) As there is no additional costs burden to the opponent there is no need to notify them.
D) If the CFA with success fee is entered into in the pre-action phase, the opponent should be notified by letter.

Question 9

Which is correct?
The fees of an expert instructed in a case can be one of the most costly disbursements. To alleviate the cost to the firm or the client …

A) the expert can be asked to enter into a CFA.
B) the expert can be asked to defer their fee until the conclusion of the case and paid then if the outcome is successful for his instructing party.
C) the expert can be asked to defer their fee until the conclusion of the case and be paid then regardless of whether the client has succeeded or not.
D) It is not possible to have any form of CFA or deferred fee arrangement with an expert as it would be in breach of SRA Code of Conduct.

Question 10

Your commercial client entered into a CFA without a success fee prior to the issue of proceedings in his breach of contract claim. Which of the following is correct in terms of the documentation your client is required to file at court on the issue of proceedings?

A) Claim Form, Particulars of Claim and expert's report.
B) Claim Form, Particulars of Claim and court fee.
C) Claim Form, Particulars of Claim, N251 and court fee.
D) Claim Form, Particulars of Claim, expert's report, N251 and court fee.

Question 11

Which is the most accurate answer?
The purpose of a statement of case is to …

A)enable the parties to see the case they are facing and see the evidence supporting the claimant's case.
B) enable the parties to narrow the issues between them and identify the core claims being made.
C) enable the defendant to know the case he is facing.
D) enable the parties to narrow the issues between them and see the strength of the evidence against them.