Reduced rates with an uplift paid on success
Conditional Fee Arrangements (or "CFAs") were originally introduced in 1990. However, they have evolved significantly since then. Unlike Damages Based Agreements this method of financing does not depend on the value of the claim.
Under our "no win, low fee" model, we offer a discount on our standard hourly rates during the life of the litigation. If success (as defined and agreed at the outset between us and you) is not achieved, that is all you will pay.
If success if achieved, at the end of the case you will pay the difference between the standard rate and the discounted rate (the "deferred fees") and a success fee.
The deferred fees form part of the "base costs" (i.e. costs at standard rates) and are therefore recoverable from a losing opponent in the ordinary way.
The success fee is calculated as a percentage of the deferred fees. Assuming you are the claimant, economically the success fee will in effect be paid out of the damages.
A CFA is therefore an attractive way for you to share risk with us and mitigate costs down side.
Another major advantage of CFAs is their flexibility. It is permissible to enter in to a wide variety of CFAs which can be fine-tuned to fit the particular case and client.
CFAs will frequently be combined with ATE insurance and/or third party funding.