What does the future hold for damages-based agreements, asks Francis Kendall
A damages-based agreement (DBA) is an agreement between a lawyer and his client under which the client agrees to pay the lawyer a percentage of any sums recovered in a claim. The lawyer is not paid if the case is lost. Previously unlawful for contentious work (ignoring employment and other tribunal claims), s 45 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, supported by the Damages-Based Agreements Regulations 2013 (SI 2013/609), allowed DBAs from 1 April 2013—a direct result of the Jackson report.
The maximum payment that the lawyer can recover from the client’s damages is capped at 25% of damages (excluding damages for future care and loss) in personal injury cases; 35% of damages on employment tribunal cases (as has existed since 2010); and 50% of damages in all other cases.
Costs recovery from the losing party will proceed as usual based on the costs actually incurred
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