Ethics
what is a solicitor-client relationship referred to as?
a fiduciary relationship (where one party has to act in the best interests of the other party)
who can terminate a retainer?
both parties (solicitor, client or by general law)
what must a solicitor do if he terminates a retainer?
he must be able to justify the reason why, provide adequate notice to the client, confirm this in writing and offer alternative options to the client
what is a lien?
a legal right for a solicitor to hold onto property such as client paperwork (already in their possession), until payment has been received.
what must a solicitor do if they cannot provide an accurate figure of cost?
the solicitor must either agree on a ceiling figure (a max budget) or schedule a review date where they can revisit the costs
before a retainer, costs need to be discussed. how might a solicitor charge their client?
Hourly rate
Fixed fee
Variable fee
Accepting shares in a new company in return for the work
what is an hourly rate?
a way in which a solicitor may charge their client for the work they do per hour. this is usually insufficient as the client would not know the amount and VAT must always be added into this if used
what is a fixed fee?
a way in which a solicitor may charge their client, but this is a fee that cannot be altered unless the client agrees
what is a variable fee?
a way in which a solicitor may charge their client. This is a fee dependant on the outcome.
what are the 2 types of variable fee?
conditional fee agreement (CFA) - no win no fee but will need to pay a percentage if you win.
damages based agreement (DBA) - if a client recovers damages. a percentage of the damages acquired will be paid to the solicitor
what are the requirements for a conditional fee agreement (CFA)
must be in writing, signed by both parties and must have an agreed success fee percentage