SQE1 sample questions

Question 98

A firm of solicitors enters into a conditional fee agreement (‘the Agreement’) with a client. The client is the claimant in an action for damages for breach of contract (‘the Claim’) against a defendant. The Agreement provides that the claimant will pay her solicitors a success fee of 50% (‘the Success Fee’) if the Claim succeeds. On the advice of her solicitors, the claimant also takes out an after the event insurance policy.

Which costs will potentially be recoverable by the claimant from the defendant if the Claim succeeds at trial?

A. The claimant’s solicitors’ fees and disbursements, excluding both the Success Fee and the cost of the after the event insurance policy.

B. The claimant’s solicitors’ fees and disbursements, including the Success Fee but excluding the cost of the after the event insurance policy.

C. The claimant’s solicitors’ fees and disbursements, excluding the Success Fee but including the cost of the after the event insurance policy.

D. The claimant’s solicitors’ fees, including the Success Fee but excluding their disbursements and the cost of the after the event insurance policy.

E. The claimant’s solicitors’ fees and disbursements, including both the Success Fee and the cost of the after the event insurance policy.