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CONTRIBUTION REQUIRED UNDER THE SUPPLEMENTARY LEGAL AID SCHEME

Type I Proceedings

 

For (1) claims arising from personal injuries or death; (2) employees’ compensation claims; and (3) representation for employees in appeals against awards made by the Labour Tribunal, you must first pay a non-refundable application fee of $1,000. You also need to pay an interim contribution of $76,783 upon acceptance of Legal Aid.

 

This interim contribution is all you have to pay for the legal services if you eventually lose in the proceedings or cannot recover any damages (compensation).

 

However, if you win and recover any damages, you need to pay a contribution amounting to 10% of the damages. This contribution will be reduced to 6% if the case is settled before a barrister is briefed to attend the trial. You also need to pay for the legal costs incurred by the Director of Legal Aid on your behalf but which cannot be recovered from your opponent. The 10% (or 6%, as the case may be) contribution and unrecoverable legal costs will be deducted (1) first from the interim contribution and application fee already paid and then (2) the damages recovered.

 

For example, if (1) you win the case at trial and recover a sum of $2 million as damages, plus $300,000 as legal costs, (2) the legal costs actually incurred by the Director of Legal Aid for your case amount to $400,000, and (3) you have paid the application fee of $1,000 and the interim contribution of $76,783, then the net sum you can receive will be $1,777,783.

 

Details of Calculation
 

(i) Damages Recovered $2,000,000
  LESS  
(ii) 10% contribution for successful claim ($200,000)
(iii) Unrecoverable legal costs ($400,000 - $300,000) ($100,000)
  ADD  
(iv) Application Fee paid $1,000
(v) Interim Contribution Paid $76,783
    -------
  NET ENTITLEMENT: $1,777,783

Type II Proceedings

 

For (i) medical, dental and legal professional negligence claims; (2) professional negligence claims against certified public accountants (practising), registered architects, registered professional engineers, registered professional surveyors, registered professional planners, authorized land surveyors, registered landscape architects and estate agents; (3) negligence claims against insurers or their intermediaries in respect of the taking out of personal insurance products; and (4) monetary claims against vendors in the sale of completed or uncompleted first-hand residential properties, you must first pay a non-refundable application fee of $5,000. You also need to pay an interim contribution of 10% of your assessed financial resources or $76,783, whichever is the higher, upon acceptance of Legal Aid.

 

This interim contribution is all you have to pay for the legal services if you eventually lose in the proceedings or cannot recover any damages (compensation).

 

However, if you win and recover any damages, you need to pay a contribution amounting to 20% of the damages. This contribution will be reduced to 15% if the case is settled before a barrister is briefed to attend the trial. You also need to pay for the legal costs incurred by the Director of Legal Aid on your behalf but which cannot be recovered from your opponent. The 20% (or 15%, as the case may be) contribution and unrecoverable legal costs will be deducted (1) first from the interim contribution and application fee already paid and then (2) the damages recovered.

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