DBAs AND COSTS BUDGETING: CURIOUSER AND CURIOUSER
The Civil Procedure Rules dealing with costs management and costs budgeting are entirely silent on the interplay with Damages-Based Agreements (DBAs).
I simply have no idea how a solicitor acting under a DBA is meant to prepare a costs budget.
There are at least three options, the apportionment one and the ordinary one, and the fixed fee one.
Let us take a case worth £100,000 with a DBA with a figure of 50% of damages recovered as the fee, that being the maximum allowed in a non-personal injury or non employment matter.
Thus the maximum fee is £50,000. For simplicity’s sake let us assume ten relevant sections of Form H and where the solicitor estimates the costs of £10,000 for each stage, but knowing that, due to the indemnity principle, no more than £50,000 can ever be recovered.
One approach – the apportionment one – is for the solicitor to…
View original post 1,053 more words