DBA’s are a relatively new option for funding litigation. In simple terms we agree with you the share of the damages that we will receive rather than charge you an hourly rate. For example if we agree to accept 40% of the sum paid. That means you pay us nothing if you lose, £40,000 if your claim is completely successful (given your claim is for £100,000) or 40% of a partial success. For example if your claim is for £100,000 and you only succeed in getting £25,000 then you would pay us £10,000. Ultimately, if you don’t get paid we don’t get paid. You will be entitled to recover our reasonable costs, measured on a time basis, from your opponent which is likely to be less than the amount we charge you.
Under a DBA you always know you will only have to pay us if you get paid and you know it will be a fraction of the amount you get paid for damages and costs.
If the case settles early you end up paying more than you would using an hourly rate. If the case goes on for a long time you will probably pay less and if you lose you don’t pay at all.
A DBA is just one of a number of options we consider when trying to find the right way to fund litigation for our clients. In some cases it is the only way a claimant can afford to bring a claim.