CFA & DBA

Question 1

No win no fee (Condit’l Fee Agmt)

Answer 1

Condit’l fee agmt incl: (❌% of dmges)
- Usual fees + condit’l agmt fee % on top
- eg Success fee: 25% | hrly rate £100 |
- 20 hrs of work | Dmges won: £4k (irrelv)
- Sol entitled £2000 x 1.25: £2500

Question 2

Damages based agmt

Answer 2

• Sol & C agree if win: sol gets x%
• Capped @ 50%
• PI 25%; Emplmt 35%

Calculations:
- Eg dmges: 60k past losses; 40k future;
- base cost 15k; 25% DBA %
- 25% Cap of PI Past Losses £60k = £15k
- CAl Total Fee: 25% x 60k (Max fee= £15k)
- Offset Recovrd Costs: Sol gets £15k Costs frm loser (“set off” agst DBA fee)
Final Outcome:
Sol gets: £15k (All frm loser).
C gets £100k (bc costs frm loser covered entire 25% fee)
- If costs > DBA fee: C pays £0 extra
- If costs < DBA fee: C pays “shortfall”