Forms of Funding For Legal Services in England and Wales - Essay Example

Forms of Funding For Legal Services in England and Wales

Introduction

Accessing funding for legal services poses a major challenge for some individuals. Without adequate funding, it may be impossible to access the services of a solicitor or a legal representative. Some individuals facing litigation can foot any bills associated with the legal fees. However, it emerges that only a small percentage of individuals have the privilege to pay legal fees from their private funds. The other individuals can access funding from different sources. Notably, the availability of public funding serves as a remarkable solution for individuals who cannot afford to pay for the legal services. Each of the funding sources has certain implications. Some sources of funding pose great ethical implications as this paper will demonstrate. It is imperative to consider the various forms of funding available to citizens in Wales and England. This paper will discuss the various forms of funding for legal services in England and Wales giving attention to the ethical implications as well as the advantages of using technological innovations to compensate for the lack of funding.

Discussion

It is the role of the solicitor to identify the most appropriate or accessible forms of funding for individuals facing litigation. The legal market has registered numerous changes that have affected the amount of legal fees that clients should pay. Many clients recognise the available funding options and are willing to explore the different options. One of the common types of funding for legal services is the before the event insurance. Some clients have existing contracts with different insurance companies and often pay premiums that allow them to enjoy certain benefits. One of the benefits of having an insurance policy is that it can cover legal fees required for different cases. Before the event insurance depends on the terms and conditions that the insurance company has established to govern usage. Before the event insurance is a reliable form of funding for individuals who can afford to buy insurance policies. The insurance policy presents clients with a measure of convenience because they do not have to seek for the alternative sources of funding that may be unreliable. The client should be paying the premiums on an annual basis to maintain the insurance active.

After the event insurance policies also provide funding for legal services. Particularly, a client may start paying premiums for a policy that will cover all the costs and risks associated with the case. The client obtains the insurance policy after the occurrence of the specific dispute leading to litigation. In many instances, after the event insurance policies are only applicable when the client has exploited all other available options. Notably, after the event insurance still represents a funding option that may help the client to pay the legal fees surrounding a certain case. Clients must understand the design of legal expenses insurance. In many cases, there are various policies appropriate for different cases. For this reason, the client should be able to choose the most appropriate policy depending on individual needs. Individuals using the after the event insurance must be keen to ensure that the policy they obtain will cater for the losses and costs associated with losing the case. It is imperative to study the policy well before making a final decision on the type of policy to obtain.

Private funds represent the most common form of funding. Individual clients opt to use their private funds to pay for legal services. The legal services may amount to significant costs, and some clients have the financial capability to pay for such services. Particularly, commercial clients are likely to rely on private funds to pay for their legal services. The client and the solicitor agree on the costs involved and develop a payment plan. Many legal representatives often exploit clients who rely on private funds to pay for their legal services. There is a common assumption that such clients belong to the upper class of the society and that they have the resources to pay any amount requested for legal services. However, some of the clients have a critical understanding of the legal procedures and the costs involved. The private clients should be able to choose reasonable solicitors who do not overcharge them. Individuals have the right to choose their preferred solicitor without any form of barriers. There is a contractual agreement that highlights the manner in which the client will pay for the legal services. The solicitor may charge a fixed fee that included all the procedures and hours spend on the case. Other solicitors opt to use the hourly rate in which the client pays a specific amount for each hour spent on the case.

Unions and associations also provide funding for legal fees. Members of such unions have the privilege of enjoying coverage when facing litigation. Such unions and associations have specific terms on which they find a client who is facing litigation. Specifically, the funding takes place in agreement with the policies of the association. Solicitors should work closely with clients who are members of associations that provide coverage for legal fees. The solicitor helps the client understand the total costs involved and relays such message to the specific association. Members of such associations often enjoy unique benefits depending on their contribution to the association. The unions and associations have a way of determining how much of the legal fees they can pay and the amount needed to pay for the client using other sources of funding. In the United Kingdom and Wales, several associations provide coverage for legal services, allowing members to have access to adequate funding in case they face litigation.

Public funding from the Legal Services Commission in Wales and the United Kingdom is available to individuals that cannot afford to pay for legal services. The Legal Services Commission is responsible for the administration of legal aid to individuals that need it. Eligible clients who can access public funding for litigation expenses often need to undertake a means and merit test. Notably, the means and merit tests determine the eligibility of the client in accessing legal aid. In some cases, clients may face the compulsion to contribute a specific amount towards the case and receive funding for a specific portion of the total amount needed for legal services. The means test determines the individual’s financial income as a way of evaluating the person’s ability to pay for their legal services.

Unfortunately, some clients cannot pay for the legal services an often require legal aid. Individuals that qualify for legal aid are those that meet the financial limits established by the legal services commission. On the other hand, the merit test seeks to determine whether the case qualifies for funding. The Legal Services Commission critically analyses the application, and the case involved using specific criteria that serve as the funding code. Based on whether the client’s case meets the specific criteria, it is possible for the legal services commission to determine how much legal aid the client is likely to receive. In many instances, the legal services commission only considers clients whose cases amount to high legal services. As long as the client demonstrates that the financial status does not allow for private funding of the case, then the legal services commission steps in to help applicants pay for their legal services.

Third party funding represents the other form of funding on which clients may rely. The funding originates from a third party who has no stake in the case, but interested in helping the client. There is an agreement between the client and the third party on the terms under which the third party pays for the legal services. Additionally, there are conditional fee agreements that determine the amount the claimants and the defendants will pay. The different forms of agreement determine specific situations in which there is a need for payment. The agreement determines the potential maximum legal fees that the client should pay. All these types of findings are available to clients in Wales and the United Kingdom. Solicitors should work with clients in exploring the most appropriate form of funding.

There are ethical issues that may emerge when using certain forms of funding. For instance, third party funding may present certain ethical issues because of the interest expressed by the third party. In many instances, the third party has an interest in the outcomes of the case without direct involvement in it. Additionally, funding from unions and associations present ethical issues similar to those observed in third party funding. The solicitors and their clients must work together in determining the relevance of the ethical issues and the likelihood of influencing the outcomes of the case. The client must recognise the ethical issues involved and resolve them appropriately. Other forms of funding do not present ethical issues. However, the use of public funding is only a reserve for individuals who do not have the financial capability to pay for their legal services. Some clients may lie regarding their financial status to access legal aid.

Conclusion

In the modern day, it is possible to rely on technological innovations to compensate for the lack of funding. Individuals who do not have access to adequate funding may explore the advantages of technological innovations in reducing the legal fees required. Modern technology can reduce the total time that a case takes or help in developing a reliable case using modern approaches. Solicitors should be able to advise clients appropriately on the technological innovations that are available. These technological innovations are a necessity for all forms of funding as a way of reducing the costs. The combination machine learning and artificial intelligence represent some of the technological innovations that may reduce the legal fees required for different cases.