Conditional fee agreement (CFA) vs Damages-based agreement (DBA)
Both mean you pay your own solicitor nothing if you lose. Under a CFA you pay normal fees plus a capped success fee if you win; under a DBA the solicitor takes a capped percentage of your damages instead. Neither covers the other side's costs, which is what ATE insurance is for.
- What the lawyer gets if you win
- Conditional fee agreement (CFA): Normal (base) fees plus a success fee. Damages-based agreement (DBA): An agreed percentage of the damages.
- Legal cap
- Conditional fee agreement (CFA): Success fee up to 100% of base costs; in personal injury, up to 25% of certain damages. Damages-based agreement (DBA): Including VAT: 25% in personal injury, 35% in employment, 50% in other claims.
- Costs paid by the other side
- Conditional fee agreement (CFA): Usually cover much of the base fees; the success fee normally comes out of your damages. Damages-based agreement (DBA): Count towards the agreed percentage, so you usually pay the difference from your damages.
- If you lose
- Conditional fee agreement (CFA): No fee to your solicitor; the other side's costs unless protected or insured. Damages-based agreement (DBA): No fee to your solicitor; the other side's costs unless protected or insured.
- Common in
- Conditional fee agreement (CFA): Personal injury, professional negligence, commercial claims. Damages-based agreement (DBA): Employment claims and some commercial claims.
Frequently asked questions
Is a CFA or a DBA cheaper?
It depends on the size of the damages and how much of the costs you recover. With high damages and low costs a CFA is often cheaper; with low recoverable costs a DBA can work out better. Ask the solicitor to model both on your figures.
Do I pay anything if I lose under a CFA or DBA?
Not to your own solicitor, if the agreement says so. You may still owe disbursements such as court fees and experts, and the other side's costs unless you are protected (for example by QOCS in most personal injury claims) or insured with ATE insurance.
Can a solicitor change from a CFA to a DBA mid-case?
Only by a new written agreement that you sign. Read how any work already done is treated before agreeing.