No Win No Fee – Damages Based Agreements


Damages Based Agreements (DBAs) are quite new, having been introduced by the “Jackson” reforms in 2013. They are similar to the contingency agreements which people associate with claims in the USA.

They do not involve a success fee. They are also not linked to hourly charging rates.

Instead the solicitor is paid by receiving an agreed percentage of your damages. The solicitor cannot recover more than 50% of your damages.

Example 9: You win damages of £100,000. Your DBA says your solicitor will take 30%. The solicitor is paid £30,000 whether your solicitor has done £20,000 worth of work or £40,000 worth of work. You also receive any contribution which your opponent is ordered to make to your costs, as you have won.

The key advantages of DBAs are that they are simple to understand, and they are linked proportionately to the value of the case to you. If you recover a substantial sum, the charge made can be proportionately high. If you recover a small sum, the charge is small.

Example 10: You win damages of £1,000,000. Your solicitor will take 20%. The solicitor is paid £200,000 whether your solicitor has done £1,000 worth of work or £300,000 worth of work. You also receive any contribution which your opponent is ordered to make to your costs, as you have won.

In reality this is not a downside, but a realistic commercial risk, which applies to all forms of funding arrangements. No one can guarantee that a case will be won at any stage. There is an equal risk that the solicitor may be out of pocket if the case is lost, or needs more work than is covered by the percentage agreed. In every case, the solicitor does not get paid for the work done on a daily basis possibly for years and maybe never. The one thing that can be guaranteed in every case is that the solicitor will have to do some work.

Again, this is why at RG Litigation we provide the RG Litigation Funding Review to consider all options for you.

If you require an RG Litigation Funding Review today, enquire here.