Zero legal fees in return for a share of your returns
Damage Based Agreements ("DBAs") were first introduced in 2013. They are the most recent form of litigation finance to be permitted by the English legal system. Until now, DBAs have not been widely adopted. However, developments in the litigation finance market mean that DBAs are more accessible than ever before.
Under a DBA, your legal team (both solicitors and barristers) are not paid throughout the life of the case. In return for agreeing to this, if the claim succeeds, your legal team is paid a percentage of the damages you recover. If the claim does not succeed, you do not owe us anything. This allows you to bring claims with zero payment to us up front and throughout the life of the case.
In the event that the claim is successful or you reach a commercial settlement, we are paid out of the damages recovered at the pre-agreed percentage. You therefore never make a payment in respect of our fees or any barristers we instruct on your behalf.
DBAs represent the purest way of sharing your litigation risk. To illustrate the level of risk we share with you: you only have to pay us based on what you actually recover if you win the case. If you do not recover anything from the Defendant because they are insolvent or impecunious or for any other reason, then neither do we – we are in it together.
The maximum amount that we can agree with you to be paid is 50% of your damages recovery, with any costs recovered from the losing opponent netted off accordingly. We will discuss the right level of payment with you depending on the specific facts of your case. The only costs you may have to pay to bring a case under a DBA are what are known as disbursements – court fees, expert fees, translation fees and so on. But you will not have to pay a penny to your legal team for the life of the case, bringing huge cash flow benefits.
We are able to offer these agreements by managing our own exposure through funding or insurance arrangements. Most importantly, our tailored DBAs allow us to take costs out of the equation so that we can work with you to develop a strong litigation strategy and maximise the chances of success.