NfP

NfP means “not for profit” and is used by the LSC to denote the voluntary sector, civil contractors involved in the CLS. The LSCs own attitude to making a profit has become apparent in recent days.
Under the tailored fixed fee scheme firms have differing options when the statutory charge applies. Most significantly, if the overall cost of the case is higher than the fixed fee, and the charge applies, you can report it as zero and retain the full costs of the case from the client.
What, however, if you are reporting the case in conjunction with a certificated matter and the stat. charge is to be enforced later on the sale of property? This question was put to us last week. The response two different firms in two different regions got from the LSC is as follows:
They will recover the entire costs claimed from the client through the stat. charge but only pay you the fixed fee — thus making a tidy profit. That’s right they will charge the client more than they are paying you! One does wonder if this can be lawful?
Add your thoughts in the comments box below.

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About Author: SP

2 comments on “NfP

  • We have been told that we can only recover the tailored fixed fee. If the statutory charge applies and our costs are recovered -what is the problem in paying us for the work we have done? I do not accept that they should make money on us.
    We are not encouraged to settle cases we are encouraged to get a client on a full public funding certificate as soon as possible.
    No solicitors practice i know wants to be a nfp organisation – no other profession would do it why do they expect us to do it?

  • Tracy
    Out of interest which Regional Office gave you this advice?

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