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 with the client liable to pay any shortfall from their
