England Embraces Contingency Fees

Litigation funding rules in England and Wales changed radically 6 months ago enabling lawyers to share to a greater extent than ever before the costs risk of litigation with their clients. Until the reforms took effect on 1 April 2013, the types of fee arrangements litigators could offer their clients were very limited due to the sever restrictions imposed on the use of contingency fees, which were considered to breach the rules against champerty and maintenance. 

With those restrictions now lifted, English litigators are able to offer a variety of funding arrangements to suit their clients' needs. Contingency fee arrangements where the fee charged by the lawyer is calculated as a percentage of damages recovered are known in England as "Damages Based Agreement" or "DBA". Previously prohibited in most types of contentious proceedings, DBAs can now be used for the first time in commercial litigation. There is another form of contingency fee known as "Conditional Fee