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ARTICLE · 24 FEBRUARY 2020

Success Fee Arrangements In Scotland

DAC Beachcroft LLP
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The Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 introduces fundamental changes to the funding and costs regime in Scotland. One of the most significant changes

United KingdomLitigation, Mediation & Arbitration
Casey Thompson
Casey Thompson

The Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 introduces fundamental changes to the funding and costs regime in Scotland. One of the most significant changes is the ability for solicitors to enter into damages based agreements with claimants in personal injury actions. Regulations in respect of the operation of such agreements, to be known as Success Fee Arrangements (SFAs), have now been published. As expected, the regulations propose to cap SFAs as follows:

(a) in respect of the first £100,000 of the financial benefit, 20%,

(b) in respect of the amount of the financial benefit over £100,000 but not exceeding £500,000, 10%,

(c) in respect of the amount of the financial benefit over £500,000, 2.5%.

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