Reading Comprehension

PT139 · S2 · P4 · Q24 Contingency Fees in Western Australia

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In October 1999, the Law Reform Commission of Western Australia (LRCWA) issued its report, “Review of the Civil and Criminal Justice System.” Buried within its 400 pages are several important recommendations for introducing contingency fees for lawyers’ services into the state of Western Australia.

Topic

The Western Australia Law Reform Commission's recommendations for contingency-fee arrangements in legal cases and their implications.

Framework

Challenge Position

Main Point

The Law Reform Commission's proposal to allow contingency-fee arrangements only as a last resort and only for financially needy clients is overly restrictive, burdensome for lawyers, and unfair to other clients; there are good reasons to make such arrangements available more broadly. The Most Valuable Sentence: The final paragraph clearly summarizes the main critique, especially where it says,

P1: Background on the Recommendation

The passage starts by letting us know that Western Australia's Law Reform Commission has recommended introducing contingency fees—where lawyers only get paid if they win—in Western Australia, with the rationale that these fees are higher due to the lawyer's risk.

P2: Details and Restrictions of Proposed Arrangement

Here, the passage explains that the Commission is only recommending a specific kind of contingency fee (the "uplift" fee, which is a standard fee plus a bonus if the case is won), and only when other options are exhausted and the client can't otherwise afford to pay. These measures are supposed to prevent lawyers from exploiting the system and to keep compensation fair.

P3: Problems and Burdens for Lawyers

The author jumps in with criticism, pointing out that requiring lawyers to check the client’s finances before entering this type of arrangement makes things complicated and burdensome, because predicting all future costs in litigation is difficult.

24.

Which one of the following is given by the passage as a reason for the difficulty a lawyer would have in determining whether—according to the LRCWA's recommendations—a prospective client was qualified to enter into an uplift agreement?

  1. The length of time that

    Length vs. Cost

    This is relevant, but a little off the mark. We're saying it will be hard to predict the cost of a trial in advance. The length of the trial could definitely affect the cost, but we'd prefer an answer that is directly answering the question.

    1% picked this

  2. Not all prospective clients would

    Not in Support Window

    This might be true, but this is not cited as a reason why the author thinks lawyers will find it difficult to determine if a client is financially qualified for uplift.

    5% picked this

  3. Correct

    Some factors that may affect

    Why this is right

    This is our best available match for the final sentence of the 3rd paragraph: the final cost ... depends in large part on factors that may change as the case unfolds.

    Skill tested: Locate Detail · how this choice captures the passage's function is the move to repeat next time.

    78% picked this

  4. Uplift agreements should only be

    Not in Support Window

    This doesn't resemble the last sentence of the 3rd paragraph at all, and it doesn't even sound like a difficulty lawyers would have in ascertaining whether their clients qualify for uplift. This seems more about whether an uplift should be used, assuming the client does qualify.

    4% picked this

  5. Investigating whether a client is

    Out of Scope: take time away

    The beginning of the 3rd paragraph mentions that the lawyer will have to not only investigate legal issues but also the financial circumstances of the client. But it never says that doing one steals time from the other.

    11% picked this

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