“Damages Based Agreements” (DBA’s)
To fund your claim, we may be willing to offer you a Damages-Based Agreement (a “DBA” or “no win, no fee” arrangement).
We will explain in detail how DBA’s work if we agree to work on that basis, but in summary:
If you win your case:
We will retain a percentage of the award recovered for you (either in settlement or from an Employment Tribunal award) in discharge of our fees. Typically we charge between 20% and 35% (which includes VAT).
In addition you will pay any Expenses. We will agree with you in advance what Expenses might be needed. That might include medical reports.
If you lose your case:
We don’t get paid for the work we’ve done.
You will still need to pay us for the Expenses we’ve agreed on.
The DBA Agreement
The DBA sets out your responsibilities, and ours too.
It also includes a risk assessment showing how we have arrived at the percentage level. We do not charge for this assessment.
If you end the agreement before your claim is won, lost, or settled, or you breach any of your responsibilities under the agreement, you must pay our Costs and the Expenses incurred up to the date you end the agreement.
Pros and Cons of a DBA
The advantages are usually obvious – apart from Expenses (which might be nil), you risk nothing by pursuing your claim under a DBA. If you lose, your legal costs are limited to Expenses.
You might decide that a DBA is less attractive if we advise you that you have a very substantial claim that is very strong – since it is likely to be cheaper in such a case to pay us on an hourly rate or fixed fee for the work done. In our experience, however, most cases are hard to classify as “very strong” so the low-risk approach of a DBA is often best.