Litigation Funding and ADR Quiz

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Questions and Answers

What is the primary purpose of litigation funding?

  • To ensure that all legal cases have equal access to funding.
  • To provide financial support to clients who cannot afford legal representation.
  • To help funders make a profit by investing in commercial cases. (correct)
  • To cover the costs of the opponent in the event the client is unsuccessful.

Which of the following is NOT a typical benefit of Alternative Dispute Resolution (ADR)?

  • ADR processes are more flexible than court proceedings.
  • ADR provides a confidential and neutral environment for parties to reach a settlement.
  • ADR guarantees that a binding outcome will be reached for both parties. (correct)
  • ADR proceedings are generally cheaper and less time-consuming than court proceedings.

What is the role of the courts in promoting ADR?

  • Courts can stay proceedings if the parties wish to attempt ADR. (correct)
  • Courts are not obliged to promote ADR.
  • Courts have the authority to impose ADR on parties who disagree.
  • Courts can only intervene if the parties fail to reach an agreement through ADR.

Which of these could be considered a reason for a party to choose ADR over traditional court proceedings?

<p>The party wants to avoid public disclosure of sensitive information. (C)</p> Signup and view all the answers

What is the requirement for litigation funding agreements providing for a percentage of the recovered sum to be paid to the funder?

<p>They must comply with the DBA Regulations. (A)</p> Signup and view all the answers

How does the R (PACCAR) v Competition Appeal Tribunal case affect litigation funding agreements?

<p>It requires agreements with percentage-based payments to comply with DBA Regulations. (B)</p> Signup and view all the answers

What is a key difference between the traditional court system and ADR methods?

<p>Only court proceedings provide a binding outcome for the parties. (B)</p> Signup and view all the answers

What is a potential drawback of ADR that might discourage parties from using it?

<p>It can lead to a binding outcome that may not be fair. (A)</p> Signup and view all the answers

What is the purpose of the mediator's private sessions with each party before mediation?

<p>To gather information and identify potential areas of compromise. (A)</p> Signup and view all the answers

What is the 'shuttle diplomacy' method used by mediators during mediation?

<p>Moving between parties in private sessions to identify common ground and potential concessions. (B)</p> Signup and view all the answers

What is the main purpose of the joint session held at the beginning of mediation?

<p>To clarify the role of the mediator and the rules of the mediation process. (D)</p> Signup and view all the answers

What is the role of experts or legal representatives in mediation?

<p>To assist the mediator in understanding technical or legal issues. (A)</p> Signup and view all the answers

What is the outcome if a mediation does not result in a settlement?

<p>The parties may agree to reschedule the mediation at a later date. (C)</p> Signup and view all the answers

What is the function of the formal settlement agreement signed by the parties after a successful mediation?

<p>To formally record and make the agreement legally binding. (A)</p> Signup and view all the answers

What is the purpose of the 'mediation bundle' that parties are required to submit before mediation?

<p>To provide the mediator with a comprehensive overview of the dispute and the parties' positions. (C)</p> Signup and view all the answers

Which of the following are NOT typically part of the mediation process?

<p>A formal hearing where each party presents evidence. (A)</p> Signup and view all the answers

Which of the following entities is not specifically mentioned as a potential client in the text?

<p>A non-profit organization (A)</p> Signup and view all the answers

What is the primary reason for accurately identifying the client at the outset of a matter?

<p>To comply with Anti-Money Laundering regulations and confirm the client's authority. (A)</p> Signup and view all the answers

Which of the following aspects is least relevant when identifying the opposing party in a dispute?

<p>The opposing party’s financial status. (A)</p> Signup and view all the answers

Why is it important to consider limitation issues when identifying the opposing party?

<p>To avoid potential legal sanctions for exceeding the time frame for filing a claim. (B)</p> Signup and view all the answers

What is the primary purpose of the “Initial Steps to take in relation to a New Matter” section?

<p>To provide a comprehensive checklist for managing new legal matters. (B)</p> Signup and view all the answers

Which of the following best describes the relationship between identifying the client and identifying the opposing party?

<p>Identifying the client is a preliminary step that informs the process of identifying the opposing party. (D)</p> Signup and view all the answers

In the context of the provided text, what is the significance of the phrase 'in the course of employment'?

<p>It defines the scope of an employer's liability for their employee's actions. (B)</p> Signup and view all the answers

What is the significance of considering 'actual/ostensible authority' when identifying the opposing party?

<p>It helps determine whether the opposing party has the legal power to bind the client. (B)</p> Signup and view all the answers

Which method of service requires completing the relevant step specified in CPR 6.5(3)?

<p>Personal service under CPR 6.5 (D)</p> Signup and view all the answers

What is the deadline for completing the step required by the chosen method of service?

<p>Midnight on the calendar day 4 months after the date of issue of the Claim Form (C)</p> Signup and view all the answers

Which of the following methods of service is considered appropriate only when the relevant jurisdiction is specified and expressly accepted?

<p>Fax (D)</p> Signup and view all the answers

What is the key consideration in determining whether service has been effected?

<p>The completion of the step required by the chosen method of service (C)</p> Signup and view all the answers

What is the primary objective of service in legal proceedings?

<p>To ensure the recipient has the opportunity to respond to the legal claim (C)</p> Signup and view all the answers

What is the main purpose of the 'Conduct Conflict Search' step in a Road Traffic Accident case?

<p>To ensure the firm is not acting for both the insurer and the insured (A)</p> Signup and view all the answers

Which of the following elements is NOT explicitly mentioned as a requirement of the 'Letter of Engagement' in the provided content?

<p>A comprehensive summary of the fees involved (B)</p> Signup and view all the answers

What is the primary goal of the first client meeting in a Road Traffic Accident case?

<p>To discuss the client's version of events and manage expectations (B)</p> Signup and view all the answers

Why is it important to manage the client's expectations during the initial stages of a Road Traffic Accident case?

<p>To ensure the client is fully aware of the potential risks and costs involved (A)</p> Signup and view all the answers

Which of the following best describes the principle of 'subrogation' in insurance contracts?

<p>The insurer takes over the client's legal rights against the responsible party (A)</p> Signup and view all the answers

What is the main purpose of taking full details of the client's version of events during the first meeting?

<p>To create a detailed record of the client's perspective for use in the case (C)</p> Signup and view all the answers

Which of the following tasks is considered a low-risk activity according to the Money Laundering Regulations 2017?

<p>Providing legal advice (D)</p> Signup and view all the answers

According to the content, what is the consequence of failing to provide a client with a 'right to cancel' clause in the Letter of Engagement?

<p>The firm cannot charge any fees for their services (D)</p> Signup and view all the answers

Under the European Rules, where should a defendant typically be sued?

<p>In the country where the defendant is domiciled. (A)</p> Signup and view all the answers

When were the European Rules no longer applicable in England and Wales?

<p>January 1, 2021 (A)</p> Signup and view all the answers

What is the basic principle of the common law rules regarding jurisdiction in England and Wales?

<p>The defendant must be served with proceedings within the jurisdiction of England and Wales. (B)</p> Signup and view all the answers

What is a 'forum non conveniens'?

<p>A legal doctrine that determines if a court is the most appropriate forum for resolving a dispute. (B)</p> Signup and view all the answers

What is a 'connecting factor' in the context of jurisdiction?

<p>A connection between the claim, parties or England and Wales that supports jurisdiction. (A)</p> Signup and view all the answers

What is a key factor to consider in relation to jurisdiction for a tortious dispute?

<p>The location where the claimant was injured. (A)</p> Signup and view all the answers

What is a jurisdiction clause?

<p>A provision in a contract that specifies which court will have jurisdiction to hear disputes. (D)</p> Signup and view all the answers

Which of the following statements is NOT true about the common law rules of jurisdiction in England and Wales?

<p>They generally require service of proceedings on the defendant within England and Wales. (D)</p> Signup and view all the answers

Flashcards

Identifying the Client

The process of confirming who the client is to ensure legal compliance and authority.

Anti-Money Laundering (MLR)

Regulations aimed at preventing money laundering activities by identifying clients.

Potential Client Types

Different forms of potential clients, including individuals, partnerships, and organizations.

Opposing Party Identification

Identifying the other party involved in legal proceedings for strategic legal action.

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Cause of Action

A reason a party can bring a lawsuit to court, based on facts that support a claim.

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Limitation Issues

Time limits within which a legal claim must be initiated, affecting the right to sue.

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Vicarious Liability

Legal responsibility of an employer for the negligent actions of an employee during work.

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Authority Types

Forms of authority in commercial contracts, including actual and ostensible authority.

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Subrogation

The insurer's right to assume the insured's legal rights after a claim.

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Conflict Search

A review to identify any prior representation of opposing parties.

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Risk Assessment

Evaluating potential risks throughout the legal matter.

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Money Laundering Regulations

Laws to prevent illicit money movement, relevant even in low-risk activities.

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Letter of Engagement

Document outlining terms of service, billing, and client rights.

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Client's Right to Cancel

Client entitlement to terminate services within a certain period.

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First Client Meeting

Initial meeting to gather information and ensure legal compliance.

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Managing Client Expectations

Ensuring clients understand the realistic outcome and costs involved.

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Methods of Service

Different ways to deliver legal documents, such as post or personal service.

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First-Class Post

A postal service for delivering documents that typically arrives the next business day.

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Personal Service

Directly delivering a document to a recipient to ensure they receive it.

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Fax Transmission

Sending documents via fax within jurisdiction when accepted by recipient.

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Electronic Service Methods

Sending documents electronically (e.g., email) when expressly accepted by the recipient.

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Litigation Funding

Funding for a client's legal costs by an external party with no connection to the case.

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Funder's Profit Expectation

Funders anticipate returns on investment when a client wins a case.

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Risk of Loss in Funding

If the client loses, the funder does not get their money back.

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DBA Regulations

Litigation funding agreements must adhere to these regulations to be enforceable.

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Alternative Dispute Resolution (ADR)

Methods for resolving disputes outside of court, usually cheaper and faster.

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Confidentiality in ADR

ADR processes are private and not public like court hearings.

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Flexibility in ADR Outcomes

ADR allows parties to withdraw before a binding agreement is reached.

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Promotion of ADR by Courts

Courts encourage consideration of ADR in disputes as per CPR 1.4(2)(e).

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Mediation Bundle

A collection of documents submitted by both parties before mediation, including position statements and key documents.

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Position Statement

A document each party submits outlining their case summary and stance on issues during mediation.

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Joint Session

A mediated meeting where all parties participate together to discuss the case and set rules for mediation.

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Caucus

A private meeting between the mediator and one party to explore their position confidentially.

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Shuttle Diplomacy

The mediator moves between parties in separate rooms to facilitate communication and negotiation.

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Settlement Agreement

A formal document outlining the terms agreed upon by the parties at the end of successful mediation.

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Confidential Discussion

Private conversations between the mediator and each party regarding sensitive issues during mediation.

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Further Joint Sessions

Additional group meetings that may be held if necessary to discuss issues in greater depth.

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Jurisdiction Rules

Guidelines determining the authority of courts in England and Wales.

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Domicile of Defendant

The permanent residence of the defendant influencing court jurisdiction.

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European Rules

Regulation (EU) 1215/2012 governing jurisdiction before 31 December 2020.

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Common Law Rules

Guidelines effective from 1 January 2021 determining court jurisdiction.

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Personal Injury Abroad

Claims involving injury that occurred outside England and Wales.

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Jurisdiction Clause

A contract provision that specifies which court will have jurisdiction.

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Forum Non Conveniens

A principle allowing courts to decline jurisdiction if it's inappropriate.

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Connecting Factor

Evidence linking the claim or parties to England and Wales for jurisdiction.

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Study Notes

Dispute Resolution Summary Notes - Solicitors Qualifying Examination (SQE)

  • The Civil Procedure Rules (CPR) and the Overriding Objective (CPR 1) are procedural codes aiming for just outcomes and proportionate costs.
  • This includes ensuring equality between parties, saving expense, and proportionate handling of the case (amount of money involved, case importance, complexity, financial position of each party).
  • The court expects parties to cooperate. Failure to comply with the Overriding Objective can lead to cost consequences.
  • The CPR accounts for the Welsh language in Welsh proceedings and provides for Welsh interpreters where needed.
  • The court has extensive case management powers (CPR 3.1), allowing for example: extending/shortening compliance timeframes with rules/directions/orders; adjusting hearing dates; requiring party or representative attendance; using direct oral communication methods; managing proceedings separately; or delaying judgment.
  • Litigants in Person (LIPs) are also subject to the CPR.
  • The Supreme Court of the United Kingdom is the highest court.
  • The Court of Appeal deals with appeals from the High Court and has both civil and criminal divisions.
  • The High Court of Justice handles cases exceeding monetary thresholds, with divisions based on specialised areas (Chancery, King's Bench, Family).
  • The County Court is the initial court for most civil cases unless they are high-value or complex.

Pre-commencement Considerations

  • Limitation periods vary based on the type of claim (contract, tort, personal injury, etc.) - see specific limitations in the table below.
  • Viable Defendant identification is crucial to ensure a valid claim.

Commencement of Court Action and Statements of Case

  • Claim for Damages thresholds and court issuance guidelines for PI Negligence cases.

Allocation to Track by Court

  • Small claims track covers claims up to £10,000.
  • Fast track deals with claims between £10,000-£25,000.
  • Multi-track handles claims above £25,000.
  • Specific allocation rules vary based on the claim type and value.

Interim Matters

  • Standard disclosure, investigation requirements (including witness statements and expert reports).
  • Interim applications, conditions, and procedures (e.g., for preservation in cases requiring special attention).

Trial

  • Pre-trial considerations (appropriate checklists and preparation)
  • Final hearing procedures
  • Appeal timeframe from the trial date
  • Cost assessment timeline within 3 months.

Funding Litigation

  • Private funds are a traditional form of litigation funding.
  • Legal Aid is for civil matters, requiring financial eligibility and subject to excluded work areas.
  • Union and Association funding may also be available.
  • Before-the-event (BTE) insurance covers potential adverse costs in unsuccessful cases.
  • Conditional Fee Agreements (CFAs) allow for payment of legal fees only if the client is successful.
  • Discounted CFAs and the fees payable structure.
  • Damages-Based Agreements (DBAs) legal representatives are paid a percentage of the damages.

Alternative Dispute Resolution (ADR)

  • Benefits include reduced cost and time, confidential environment, and flexibility in outcomes (with exceptions in arbitration and adjudication).
  • Processes: Negotiations, mediation, conciliation, and other methods.

Pre-action Considerations

  • Jurisdiction determines the appropriate court's authority.
  • Domice, relationship, and location factors.
  • Contract & Tortious disputes, considerations in determining jurisdiction.

Key Limitation Periods

Class of Claim Limitation Period
Contract 6 years from the date on which the cause of action accrued.
Tort (except those listed below) 6 years from the date on which the cause of action accrued.
Personal Injury 3 years from the date on which the cause of action accrued or the date of knowledge (if later) of the person injured.
Fatal Accident Act 1976 claims 3 years from the date of death or the date of knowledge of the person for whose benefit the action is brought, whichever is the later.

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Dispute Resolution Summary Notes - SQE PDF

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