Q&As

Does legal aid qualify as a funding arrangement for the purposes of serving a notice of funding?

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Published on LexisPSL on 29/03/2017

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Does legal aid qualify as a funding arrangement for the purposes of serving a notice of funding?
  • Requirement to serve a notice of funding
  • Meaning of funding arrangement (pre-April 2013 rules)
  • Legal aid and funding arrangements

Does legal aid qualify as a funding arrangement for the purposes of serving a notice of funding?

Requirement to serve a notice of funding

Prior to legal reforms under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) in 2013, there was a requirement in the Civil Procedure Rules to serve a notice of funding in certain circumstances.

The previous rules regarding service of a notice of funding were set out in CPR 43 and CPR 44. The old CPR 44.3B stated:

'Limits on recovery under funding arrangements

(1) Unless the court orders otherwise, a party may not recover as an additional liability—

(a) any proportion of the percentage increase relating to the cost to the legal representative of the postponement of the payment of his fees and expenses;

(b) any provision made by a membership organisation which exceeds the likely cost to that party of the premium of an insurance policy against the risk of incurring a liability to pay the costs of other parties to the proceedings;

(c) any additional liability for any period during which that party failed to provide information about a funding arrangement in accordance with a rule, practice direction or court order;

(d) any percentage increase where that party has failed to comply with—

(i) a requirement in the Costs Practice Direction; or

(ii) a court order, to disclose in any assessment proceedings the reasons for

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