Contingency fee agreement

A Contingency Fee Agreement is also called a Damaged-Based Agreement. It is a different type of No Win No Fee agreement to a Conditional Fee Agreement (otherwise known as No Win No Fee Agreement).

How is a Contingency Fee Agreement different from a Conditional Fee Agreement?

With a No Win, No Fee agreement, if you are successful with your claim, the Solicitor is normally able to recover their basic fees from the opponent, whereby you will only usually be liable for a success fee payable if your case wins. This will be based on the amount of basic charges for the work undertaken subject to a capped percentage of the damages awarded to you.

A solicitor may enter into a Contingency Fee Agreement with you if they are unlikely to be able to recover their legal fees, or the recoverable legal fees are likely to be very small. Like No Win, No Fee, you pay a percentage of the damages awarded to you, but this percentage is likely to be higher, and a fixed percentage of compensation as legal costs will not be recoverable.

With both a Contingency Fee Agreement and No Win, No Fee agreement, you do not pay any costs for representation unless your case wins. However, you will usually be responsible for payment of disbursements, being expenses incurred in the case such as court fees and expert fees. In some instances, you may be able to obtain insurance or litigation funding to cover the cost of such expenses.

Have a question or need some help?

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Davisons were established in 1985 and has many years of experience in resolving disputes through negotiation, mediation, and court action if necessary.

To find out more about Contingency Fee Agreements or for clarification on how it works, please ask a member of the litigation team.

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