Damages-based agreements - 24/05/2010
Introduction date
Likely introduction date: consultation closed 25 September 2009.
Summary
The Ministry of Justice has consulted on proposals to regulate damages-based contingency fee agreements, generally used in employment tribunal proceedings, that have existed without specific statutory regulation until now.
A new clause is to be added to the Coroners and Justice Bill (currently at Committee stage (Lords)) and the consultation sought views on the details of the regulatory requirements, including:
- a cap on the percentage of damages that can be recovered by the representative;
- a requirement that representatives provide claimants with clear and transparent information on total costs;
- a requirement that representatives clarify the deductions made from the claimant's award which are to go to the representative as their fee for taking the case; and
- a requirement that they provide explicit information on alternative methods of funding.
For more information, help or advice please contact Gill Hunter on 0191 211 7944 or email advice@muckle-llp.com.
