The Late Payment of Commercial Debts (Interest) (Legal Aid Exceptions) Order 1998

Exception for certain Legal Aid contracts

3.—(1) A contract of a description specified in paragraph (2) below which is made whilst this Order is in force is an excepted contract for the purposes of section 2 of the 1998 Act.

(2) The specified description of contract is a legal aid contract under which the amount of the charges and fees payable are, or are the same as, those provided by regulations(1) made under section 34(2)(e) of the 1988 Act(2).

(3) For the purposes of paragraph (2) above, the charges and fees payable under any legal aid contract may be taken to be, or to be the same as, those provided for in such regulations notwithstanding that–

(a) such regulations make provision in relation to remuneration and payment for contracts of the description to which that legal aid contract belongs different from the provision made for remuneration and payment applicable to services of the same description where no legal aid contract is in force(3); or

(b) it is provided (however worded, and whether by that legal aid contract, or by such regulations in respect of contracts of a description to which that legal aid contract belongs) that–

(i) the total of the amounts which may be paid in respect of any period of time shall not exceed a limit; or

(ii) amounts may be paid on account either at times, or subject to limits, different from the times or limits applicable under such regulations to services of the same description where no legal aid contract is in force; or

(iii) in the event of termination of the legal aid contract, or any contract schedule thereto, provisions relating to payment shall apply different from the provisions which apply whilst the legal aid contract, or contract schedule as the case may be, is in force.

(4) In paragraph 3(b)(iii) above–

“contract schedule” means the provisions of a legal aid contract which relate to the descriptions of services which may be provided pursuant to a legal aid contract by a particular office of the service provider; and

“provisions relating to payment” means provisions relating to the amounts of the charges and fees, the limit in respect of any period of time, the times at which payments on account may be made or the limits to which payments on account are subject.

(1)

At the time of making this Order, the relevant regulations are S.I. 1989/340 (as last amended by S.I. 1998/663; the current rates of remuneration were substituted by S.I. 1996/641); 1994/228 (as amended by S.I. 1996/645); 1991/2038 (as last amended by S.I. 1997/2394; the current rates of remuneration were inserted by S.I. 1996/650 as amended by S.I. 1997/2394); 1989/343 (as last amended by S.I. 1997/1485); 1989/341 (as last amended by S.I. 1996/647, which substituted the current rates of remuneration) and 1989/342 (as last amended by S.I. 1996/1554; the current rates of remuneration were substituted by S.I. 1996/648).

(2)

Section 34(2)(e) was amended by section 125(3) of, and paragraph 63(5)(b) of Schedule 18 to, the Courts and Legal Services Act 1990 (c. 41).

(3)

The regulations referred to in the previous footnote make provision for remuneration and payment when the service is provided under a franchise agreement different from provision in other cases.