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Access to Justice and Funding

Conditional fee agreements and private funding

  • 3 things to know
  • AS Unit 1

Overview

Conditional fee agreement, success fee and after the event insurance.

What you need to know

Answer each one before you reveal it.

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Key term

What is qualified one-way costs shifting?

Numbers

Which statutes permitted conditional fee agreements?

Numbers

Who pays the success fee under the current rules?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a conditional fee agreement?

    Model answer

    It is an agreement under which the lawyer receives no fee, or a reduced fee, if the case is lost, and the normal fee plus a success fee if it is won.

  2. 2

    Which statutes permitted conditional fee agreements?

    Model answer

    The Courts and Legal Services Act 1990 first permitted them, and the Access to Justice Act 1999 extended their use to most civil claims.

  3. 3

    What is a success fee?

    Model answer

    A success fee is an uplift on the lawyer's normal charges to reflect the risk of receiving nothing, and it is capped as a percentage of those base charges.

  4. 4

    Who pays the success fee under the current rules?

    Model answer

    Since April 2013 the success fee is no longer recoverable from the losing party and is deducted from the client's damages, subject to a cap on the proportion of damages that may be taken in a personal injury case.

  5. 5

    Which review led to the reform of conditional fee agreements?

    Model answer

    Sir Rupert Jackson's review of civil litigation costs concluded that recoverable success fees and insurance premiums had made litigation disproportionately expensive for defendants.

  6. 6

    How were claimants compensated for losing recoverability of the success fee?

    Model answer

    General damages for pain, suffering and loss of amenity were increased by ten per cent, a change announced by the Court of Appeal in Simmons v Castle (2012).

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