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Ministry of Justice publishes CFA & DBA Regulations

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The Ministry of Justice have published two draft statutory instruments that will come into force on 1 April:

The Conditional Fee Agreements Order 2013

The Damages-Based Agreements Regulations 2013

The draft Conditional Fee Agreements Order 2013 addresses the 25% cap on the success fee which can be taken from a client’s damages (excluding those for future care and loss) in personal injury claims. This cap will not apply to a CFA which is entered into before 1 April 2013, so long as the client also received advocacy or litigation services under the agreement and in connection with the proceedings before 1 April 2013.

The draft Damages-Based Agreements Regulations 2013 addresses the sums which can be deducted by reference to the amount of damages. For Personal Injury claims that cap is 25%, again excluding future care and loss. In all other cases the cap is 50%. These caps include VAT and Counsel’s fees. Counsel’s fees are not within the cap in employment cases.

We have also seen the draft of the new Civil Procedure Rules which will replace CPR 43-18. For more information, contact Nick Lee.