If you would like to discuss funding options and find out if a compensation agreement is likely to be right for you, call us on 0808 139 1606 or send us an email [email protected] A compensation agreement has been a very popular legal funding model in the Us for a few years, but it was recently introduced as a concept in the UK legal system. Ms. Zuberi argues that the agreement is not applicable because of this leak clause. Whether a DBA is better suited to you than a normal storage contract or a No Win No Fee contract depends on the circumstances of each case and your particular circumstances. We work with you to find the best funding structure, taking into account your specific needs and the financial capacity of each party. A compensation agreement (DBA) is a form of „no-Win, no fee” agreement between the lawyer and the client, under which an agreed portion of the sums claimed by the client in a dispute is paid to the lawyer. This type of agreement may be more often referred to as „emergency fees,” but in England and Wales it would also cover a „conditional pricing agreement.” It was recognized that compensation agreements do not appeal to lawyers because of the risk to which they are exposed. This has resulted in a decrease in the number of agreements (with the restriction of individuals` access to legal advice in companies). As a result, the conditional royalty agreement was replaced by the compensation agreement. As of April 6, 2013, a lawyer was authorized to enter into an agreement with his client that did not impose a higher expense burden on the defendant, with the exception of the traditional order of legal costs at the standard rate, which is consistent with the principle of compensation. The liability of a losing party, the costs of an opponent who has entered into a DBA, continues to be calculated in the usual way, i.e. on the basis of the lawyer`s hourly rates. If the achievable costs calculated in this way are less than the amount owed to the winning party under the DBA, the winning party must finance the deficit.
However, where costs calculated on the basis of the hourly rate are greater than the amount owed under the DBA, eligible costs are limited to the amount owed by the DBA. Under a DBA, you always know that you only have to pay us if you are paid and you know that it will be a fraction of the amount you will receive for damages and fees. We found that people are attracted to a compensation contract because they provide security, so that customers know exactly where they stand. Counsel agreed to a percentage allocation with the client in advance.