Keenan and Riches’BUSINESS LAW

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Chapter 3Resolving disputes

Development) perform a similar service for members
employed in business.


Information and advice for citizens and
consumers


Many people are deterred from seeking legal advice and
taking legal action because of fear of what it will cost
them. However, there are schemes and organisations
which aim to provide low-cost legal help.


Community Legal Service Fund


Unlike businesspeople, private individuals may be able
to obtain financial help in legal matters from the Com-
munity Legal Service Fund, which is administered by the
Legal Services Commission, as established by the Access
to Justice Act 1999. The help available includes:


1 Community Legal Services(formerly the civil legal
aid scheme) – available for individuals requiring help
in relation to civil matters. A solicitor may provide legal
help(previously referred to as ‘advice and assistance’)
with problems which fall within the scope of the scheme,
such as housing problems, clinical negligence, credit and
debts, contract disputes, welfare benefits and financial
claims arising from divorce. The scheme does not cover
defamation and malicious falsehood, conveyancing, com-
pany or partnership law, neighbour or boundary disputes.
Eligibility for immediate help is based on a means test
carried out by the solicitor. Applicants will qualify for help
if they are receiving certain state benefits or are on a low
income. If the application is successful, the solicitor will
be able to carry out two hours’ worth of work (three hours
in the case of divorce work). If more work is required, the
solicitor must apply to the Legal Services Commission
for permission to carry on. Permission will be granted
only if the case satisfies a ‘merits’ test, i.e. the applicant
has a good enough case to justify further support. If court
proceedings become necessary, a Legal Representation
Certificate must be obtained.


2 Criminal Defence Service.Under the Access to Justice
Act 1999, the Criminal Defence Service has replaced the
system of criminal legal aid. Advice, assistance and rep-
resentation in criminal matters is available from private
practice solicitors who have contracted with the Legal
Services Commission to provide such services. The Legal
Services Commission also directly employs a number
of criminal defence lawyers, known as public defenders.
The duty solicitor scheme ensures that solicitors are


available in police stations and magistrates’ courts to
give free legal advice.

Conditional fees
The Courts and Legal Services Act 1990 introduced con-
ditional fee arrangements. Advocates or litigators can
enter into agreements with their clients whereby they
receive their normal fee plus an uplift in the event of
success (known as a success fee) but nothing if unsuc-
cessful. The percentage of any uplift must be specified in
the agreement and is subject to a maximum percentage
determined by the Lord Chancellor in consultation with
the designated judges, the Bar, the Law Society and
other appropriate authorised bodies. The maximum
uplift permitted is 100 per cent. The scheme, which
became available in 1995, was originally limited to cases
involving personal injury, insolvency and the European
Court of Human Rights. However, in 1998 conditional
fee arrangements were extended to all civil cases, other
than family proceedings. The Access to Justice Act 1999
made a number of changes to the scheme. It allows the
uplift payable in successful cases to be recovered from
the losing side and for the cost of any insurance pre-
miums to be similarly recoverable. Conditional fee
arrangements are now an important method of funding
civil actions, particularly as the Access to Justice Act
1999 removed personal injury cases (with the exception
of clinical negligence) from eligibility for legal aid.
There is a range of voluntary organisations which
provide legal advice and assistance to private indi-
viduals. Citizens’ Advice Bureaux provide free advice on
many legal matters including housing, social security
entitlement, consumer complaints and employment
rights. Some inner-city areas are served by law centres.
Law centres are staffed by lawyers and tend to provide
more specialised advice and assistance on social welfare
matters, including immigration, landlord and tenant,
debt and social security benefits. There are also spe-
cialised advice centres available in the areas of housing
and consumer problems. Over time the Community
Legal Service will develop its role in co-ordinating the
activities of these organisations with the aim of ensuring
a comprehensive system of advice and other legal ser-
vices to match local needs.
Trade unions often offer free legal advice and assist-
ance on employment matters to their members. Legal
advice and assistance may form part of a person’s insur-
ance cover. Motoring organisations, such as the AA and
RAC, provide legal advice and help for their members.

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