Comments on: Contingency fees in employment – Law Society wades in… http://blog.usefullyemployed.co.uk/2010/06/16/contingency-fees-in-employment-law-society-wades-in/ An Employment Law Blog by a UK barrister Wed, 08 Feb 2012 13:55:01 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: UK Jobs http://blog.usefullyemployed.co.uk/2010/06/16/contingency-fees-in-employment-law-society-wades-in/comment-page-1/#comment-71497 UK Jobs Sat, 15 Oct 2011 07:45:43 +0000 http://blog.usefullyemployed.co.uk/?p=473#comment-71497 Dear Admin, This blog is very informative blog.. Thanks for sharing this. Dear Admin, This blog is very informative blog.. Thanks for sharing this.

]]> By: Usefully Employed http://blog.usefullyemployed.co.uk/2010/06/16/contingency-fees-in-employment-law-society-wades-in/comment-page-1/#comment-40136 Usefully Employed Wed, 07 Jul 2010 21:24:59 +0000 http://blog.usefullyemployed.co.uk/?p=473#comment-40136 I agree with you Mark - the arrangement you describe most probably would be caught by the regulations. It seems a shame that a simple hourly rate charging basis can continue, but one with a cap will not, when the cap benefits no-one but the client. I agree with you Mark – the arrangement you describe most probably would be caught by the regulations. It seems a shame that a simple hourly rate charging basis can continue, but one with a cap will not, when the cap benefits no-one but the client.

]]> By: Mark http://blog.usefullyemployed.co.uk/2010/06/16/contingency-fees-in-employment-law-society-wades-in/comment-page-1/#comment-40021 Mark Tue, 06 Jul 2010 12:17:31 +0000 http://blog.usefullyemployed.co.uk/?p=473#comment-40021 The Law Society makes an interesting point about non-contentious business agreements, but I don't think complying with section 57(1) would oust the DBA regs if what you are in essence agreeing with your client is a DBA - i.e. a fee which is determined by reference to damages awarded. My guess is that no-one will try this, because the risk is that all your fees are irrecoverable. The regs also seem to be very wide. A query came up as to whether a no-win-no-fee agreement whereby fees were based on normal hourly rates but capped at 50% of damages would fall foul of the DBA regs. I took the view that it probably would. Although these regs are well intentioned, I think the effect will be to reduce the funding options for clients beause the cap is set so low that solicitors will think twice before taking on complex cases (and lets face it, cases are getting much more complex these dayes) unless the damages are likely to be high. The Law Society makes an interesting point about non-contentious business agreements, but I don’t think complying with section 57(1) would oust the DBA regs if what you are in essence agreeing with your client is a DBA – i.e. a fee which is determined by reference to damages awarded. My guess is that no-one will try this, because the risk is that all your fees are irrecoverable.

The regs also seem to be very wide. A query came up as to whether a no-win-no-fee agreement whereby fees were based on normal hourly rates but capped at 50% of damages would fall foul of the DBA regs. I took the view that it probably would. Although these regs are well intentioned, I think the effect will be to reduce the funding options for clients beause the cap is set so low that solicitors will think twice before taking on complex cases (and lets face it, cases are getting much more complex these dayes) unless the damages are likely to be high.

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