• How do I fund the action?
• The No Win No Fee
• Public Funding (formerly known as Legal Aid)
• How to apply for Public Funding
• The Means Test
• The Merits Test
• The Reasonableness Test
• Private Funding

General considerations.

How do I fund the action?

There are various methods of funding the action. You may be entitled to Public Funding, subject to the merits of the action and your means which is subject to independent assessment. Some areas of the law, such as Personal Injury claims have been removed completely from the public funding sphere since April 2000. Alternatively you may be offered a Conditional Fee arrangement (commonly known as "No Win No Fee") if neither are offered to you, you may have to pay privately for the action.

2. What if I lose the action?
The General Principle is that the loser pays the winners costs including his or her own costs. So when the case is lost there is potential for an individual to pay both sides costs. The converse is true that is where a claimants claim is successful that person will benefit from the "loser pays" rule and the majority of the costs will be paid in addition to any damages awarded.

The No Win No Fee (Conditional Fee Agreement).

Most Personal Injury claims are funded through the Conditional Fee Scheme, commonly known as the No Win No Fee Scheme. Desor & Co operate such a scheme and will consider the suitability of any case for funding in this way.

The way that this scheme works is that the claimants solicitor agrees to represent the claimant on the basis that if the claim is lost the solicitor will not attempt to recoup their costs. For taking that risk the solicitors are allowed to agree with the claimant that of the case is won a percentage of the damage monies will be paid to the solicitor from the damages awarded. This sum is known as the "Success Fee" and is based on a scale of the solicitors normal fee and can be a maximum of 100% of the solicitor's actual costs.

To protect the Claimant from having to pay the Defendants costs if the case is lost, insurers offer a number of different policies, which for a premium covers those costs. The Insurance Premium differs according to the value of the claim. The insurance for a Road traffic Accident is cheaper then for an accident at work. If the claim is worth in excess of £15000 the premium is higher.

At the initial interview we would be happy to discuss the above with you fully.

Public Funding.

Throughout the UK there is a Public Funding system which has historically provided legal advice and assistance for those people who are able to satisfy the eligibility criteria whether they are acting as Claimants or Defendants in civil actions.

Public Funding is administered by the Legal Services Commission and the Lord Chancellors Department has overall control of the Public Funding system. The Commission is organised into various regional offices, which administer the Public Funding system in that region and deal with all applications from solicitors operating within their boundaries.

The Legal Services Commission has set up a system awarding Franchises to firms of solicitors in certain areas of work if they are able to demonstrate compliance with quality assurance standard set by the Commission. Desor & Co has complied with the standard and has a Franchise in Family, Personal Injury Housing and Civil and Consumer Disputes.

Public Funding has been abolished since April 2000 for the majority of personal injury claims.

How to apply for public funding.

In a case that involves litigation between parties and where a solicitor considers that there is a sufficiently strong case to warrant public funding and the applicant is financially eligible. An application for Public Funding will be made.

This is done by completing a number of forms, which ask for information about the case and the applicant's financial circumstances. Because of the complexity of the questions asked we will normally complete the application during the first interview. The applicant usually completes the financial form with our assistance if necessary.

There is a three-stage test to decide whether Public Funding will be granted.

The MEANS TEST:

The means test assesses whether an individual is financially eligible for legal aid.

Individuals claiming income support pass the means test automatically and will be eligible for legal aid without having to make any financial contributions. This is also the case for children unless they have a private source of income or capital, or they are in receipt of certain invalidity benefits.

For those who are either working or perhaps claiming benefits other than income support or job seekers allowance, it is necessary to assess the income coming into the household and then subtract the amount of money spent on certain items such as housing costs, travel, expenses to work and the number of dependants being supported in the household.

The amount of the applicant's capital also needs to be considered. The board takes into account savings and other assets of value such as jewellery, cars etc.

THE MERITS TEST:

The second test for Public Funding eligibility is the legal merits test.

This section states that a person shall not be granted Public Funding for the purpose of any proceedings unless the Commission is satisfied that there are reasonable grounds for taking, defending or being party to the proceedings. Therefore, to get Public Funding, it is necessary to satisfy the Commission on the evidence available and the applicable law that there is a case to be made out which stands a reasonable prospect of success.

THE REASONABLENESS TEST:

Having passed the two tests, it is necessary finally to satisfy the reasonableness test. This allows the Legal Services Commission to consider, in all the circumstances, whether Public Funding should be granted.

Some of the factors, which we take into account, are the amount of the benefit to be gained compared to the cost, whether there is another way of sorting out the dispute.

If Public Funding is granted there will be conditions imposed as to how much can be spent on the case and what work can be done. It is possible for us to apply to amend those conditions. If Public Funding is refused, it is possible to appeal to the legal aid board's Area Committee.

Once Public Funding is awarded:

It is important to remember that Public Funding is not free. In the event that property or money is recovered or preserved or damages awarded, the Legal Services Commission have a first charge on that sum to recover the costs incurred during the conduct of your case. In the event that you have paid any contribution towards Public Funding that contribution will also be utilised towards your costs. In most Family disputes awards are not made for costs and therefore you must always bear in mind that costs will be deducted from your award. If the recovery is your own property, if it was the subject matter of the dispute between the parties, the Legal Services Commission may defer their charge provided the property is used as your sole residence. Interest would have to be paid on the charge at a fixed rate until the property is eventually sold.

We would be happy to discuss the various aspects of Public Funding to you at the first interview.

Private Funding.

For some cases the client may have to fund the case personally. In that
instance the firm will regularly bill the work done so that the claimant has
a clear idea as to the level of costs. You will be clearly informed at the
outset of the firms charges on an hourly basis which differs according to
the status of the fee earner dealing with the matter.

Payment may be made by CREDIT CARD, CASH OR CHEQUE.