The Damages-Based Agreements Regulations 2013
| Jurisdiction | UK Non-devolved |
2013 No. 609
Legal Services, England And Wales
The Damages-Based Agreements Regulations 2013
Made 13th March 2013
Coming into force 1st April 2013
The Lord Chancellor in exercise of the powers conferred by sections 58AA(4) and (5) and 120(3) of the Courts and Legal Services Act 19901, having consulted in accordance with section 58AA(6) of that Act, makes the following Regulations, a draft of which has been laid before and approved by resolution of each House of Parliament in accordance with section 120(4)2of that Act.
Citation, commencement, interpretation and application
1.—(1) These Regulations may be cited as the Damages-Based Agreements Regulations 2013 and come into force on 1st April 2013.
(2) In these Regulations—
“the Act” means the Courts and Legal Services Act 1990;
“claim for personal injuries” has the same meaning as in Rule 2.3 of the Civil Procedure Rules 19983;
“client” means the person who has instructed the representative to provide advocacy services, litigation services (within section 119 of the Act) or claims management services (within the meaning of section 4(2)(b) of the Compensation Act 20064) and is liable to make a payment for those services;
“costs” means the total of the representative’s time reasonably spent, in respect of the claim or proceedings, multiplied by the reasonable hourly rate of remuneration of the representative;
“employment matter” means a matter that is, or could become, the subject of proceedings before an employment tribunal;
“expenses” means disbursements incurred by the representative, including the expense of obtaining an expert’s report and, in an employment matter only, counsel’s fees;
“payment” means that part of the sum recovered in respect of the claim or damages awarded that the client agrees to pay the representative, and excludes expenses but includes, in respect of any claim or proceedings to which these regulations apply other than an employment matter, any disbursements incurred by the representative in respect of counsel’s fees;
“representative” means the person providing the advocacy services, litigation services or claims management services to which the damages-based agreement relates.
(3) Subject to paragraphs (4), (5) and (6), these Regulations shall apply to all damages-based agreements entered into on or after the date on which these Regulations come into force.
(4) Subject to paragraph (6), these Regulations shall not apply to any damages-based agreement to which section 57 of the Solicitors Act 19745(non-contentious business agreements between solicitor and client) applies.
(5) In these Regulations—
(a)
(a) regulation 4 does not apply; and
(b)
(b) regulations 5, 6, 7 and 8 only apply,
to any damages-based agreement in respect of an employment matter.
(6) Where these Regulations relate to an employment matter, they apply to all damages-based agreements signed on or after the date on which these Regulations come into force.
Revocation of 2010 Regulations and transitional provision
2.—(1) Subject to paragraph (2), the Damages-Based Agreements Regulations 20106(“the 2010 Regulations”) are revoked.
(2) The 2010 Regulations shall continue to have effect in respect of any damages-based agreement to which those Regulations applied and which was signed before the date on which these Regulations come into force.
Requirements of an agreement in respect of all damages-based agreements
3. The requirements prescribed for the purposes of section 58AA(4)(c) of the Act are that the terms and conditions of a damages-based agreement must specify—
(a) the claim or proceedings or parts of them to which the agreement relates;
(b) the circumstances in which the representative’s payment, expenses and costs, or part of them, are payable; and
(c) the reason for setting the amount of the payment at the level agreed, which, in an employment matter, shall include having regard to, where appropriate, whether the claim or proceedings is one of several similar claims or proceedings.
Payment in respect of claims or proceedings other than an employment matter
4.—(1) In respect of any claim or proceedings, other than an employment matter, to which these Regulations apply, a damages-based agreement must not require an amount to be paid by the client other than—
(a)
(a) the payment, net of—
(i) any costs (including fixed costs under Part 45 of the Civil Procedure Rules 1998); and
(ii) where relevant, any sum in respect of disbursements incurred by the representative in respect of counsel’s fees,
that have been paid or are payable by another party to the proceedings by agreement or order; and
(b)
(b) any expenses incurred by the representative, net of any amount which has been paid or is payable by another party to the proceedings by agreement or order.
(2) In a claim for personal injuries—
(a)
(a) the only sums recovered by the client from which the payment shall be met are—
(i) general damages for pain, suffering and loss of amenity; and
(ii) damages for pecuniary loss other than future pecuniary loss,
net of any sums recoverable by the Compensation Recovery Unit of the Department for Work and Pensions; and
(b)
(b) subject to paragraph (4), a damages-based agreement must not provide for a payment above an amount which...
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