Damages-Based Agreements
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At Witan Solicitors, we offer Damages-Based Agreements (DBAs) to provide clients with a cost-effective and accessible way to pursue their civil and commercial litigation claims. DBAs are a powerful tool that aligns legal costs with case outcomes, allowing you to focus on your dispute without the stress of upfront fees.
This page explains what DBAs are, how they work, and addresses common questions about their use in civil and commercial litigation.
What is a Damages-Based Agreement?
A Damages-Based Agreement (DBA) is a funding arrangement where your solicitor’s fees are contingent on the outcome of your case. If you win, the solicitor receives a pre-agreed percentage of the damages recovered. If you lose, you are not required to pay your solicitor’s fees for the case.
DBAs are particularly beneficial for high-value civil and commercial claims where the potential recovery justifies the solicitor’s risk in pursuing the case.
How Does a Damages-Based Agreement Work?
- Suitability:
- We would assess whether your claim is suitable for a damages based agreement. Please note, we may charge at our standard rate for such an assessment.
2. Initial Agreement:
- We would then agree on the percentage of recovered damages that will be paid as legal fees if you succeed.
- The percentage is capped in England to ensure fairness. For civil and commercial cases, it is typically up to 50% of the damages recovered.
3. Case Progression:
- We would then fund the case covering legal fees.
- You may still be responsible for other associated fees such as Court fees, expert fees etc.
- You do not pay any legal fees upfront or as the case progresses.
4. Outcome:
- If you win, the agreed percentage of the damages recovered is paid to us.
- If you lose, you pay nothing toward our fees for the case.
When Can You Ask for a Damages-Based Agreement?
You can request a DBA for:
- Commercial Disputes: Contract breaches, shareholder disputes, intellectual property claims, and professional negligence cases.
- Civil Litigation: Claims involving property disputes, fraud, or financial recoveries.
- High-Value or Complex Claims: DBAs are particularly suitable for cases where the potential recovery is substantial, and the solicitor believes in the merits of the case.
We will always need to assess the likelihood of success and the potential value of the damages before agreeing to a DBA. Typically, we only offer DBA’s to claims of over £250,000.
What Happens If You Win?
If your case is successful:
- We would receive the agreed percentage of the damages recovered. For example, if the agreement is set at 30% and the case recovers £1 million, we would be paid £300,000.
- The remaining damages are yours to keep.
- Depending on the case, some costs may be recoverable from the losing party, reducing the overall financial impact on your compensation.
What Happens If You Lose?
If your case is unsuccessful:
- You are not required to pay our fees for the case.
- You may still be liable for certain costs, such as those awarded to the opposing party or third-party disbursements (e.g., court filing fees or expert witness costs).
- To manage this risk, we will always recommend After-the-Event (ATE) insurance, which can protect you from adverse costs.
Why Choose a Damages-Based Agreement for Civil and Commercial Litigation?
- No Upfront Costs: You only pay if you win, reducing the financial risk of litigation.
- Aligned Incentives: Our success is tied directly to your success, ensuring a focused and driven approach.
- Access to Justice: DBAs open the door to pursuing legitimate claims that might otherwise be financially out of reach.
Why choose Witan Solicitors?
At Witan Solicitors, we are committed to providing you with expert legal representation through our Damages-Based Agreement (DBA) options.
Here’s why you should choose us:
- No Upfront Fees
- Expert Legal Guidance
- Clear, Transparent Pricing
- Access to Justice
- Aligned Interests