‘In Zuberi v Lexlaw Ltd [2021] EWCA Civ 16, the Court of Appeal has provided important guidance on the nature of damages-based agreements (DBAs). By way of reminder, a DBA is a funding arrangement between a lawyer and a client whereby the lawyer’s fees are dependent upon the success of the case and are determined as a percentage of the damages received by the client. Under a DBA, a lawyer may not recover costs more than the total amount chargeable to the client under the DBA, and will not receive anything in the event that the case is unsuccessful. It should be noted that regulation 4(1) of the Damages-Based Agreements Regulations 2013 does not permit legal representatives to charge costs and expenses if the client terminates the retainer, whereas regulation 8 (which applies only to employment matters) does. This apparent conflict was considered in Zuberi.’
Law Society's Gazette, 17th May 2021
Source: www.lawgazette.co.uk
