A Damages-Based Agreement is one of the funding options a solicitor can offer a client: a 'no win, no fee' deal where, if the client succeeds, the solicitor takes an agreed percentage of the damages recovered. Get the terms wrong and the agreement becomes unenforceable — meaning the solicitor risks no fee at all for the work done — so knowing the rules is essential before you ever offer one to a client.
This lesson takes you through how DBAs work and where they fit in everyday practice.
What this lesson covers:
- Nature and Scope of a DBA — what a DBA is, how the fee is calculated, what happens if the client loses, and the proceedings where DBAs are not allowed.
- Enforceability and Pre-Contract Obligations — the prescribed terms a DBA must contain and what you must explain to the client before they sign.
- Fee Caps and Disbursements — the percentage caps for different claim types, what the cap is calculated on, and how disbursements are treated.
- Termination — the client's right to end the agreement and what the solicitor can recover when it ends.
- Distinction from CFAs and Practical Use — how a DBA compares to a Conditional Fee Agreement in fee structure and cash flow.