Search Legislation

Courts and Legal Services Act 1990

 Help about what version

What Version

  • Latest available (Revised)
  • Original (As enacted)
 Help about advanced features

Advanced Features

Changes to legislation:

There are currently no known outstanding effects for the Courts and Legal Services Act 1990, Section 58AA. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

[F258AAF1Damages-based agreements ...E+W

(1)A damages-based agreement which F3... and satisfies the conditions in subsection (4) is not unenforceable by reason only of its being a damages-based agreement.

(2)But [F4(subject to subsection (9))] a damages-based agreement which F5... does not satisfy those conditions is unenforceable.

(3)For the purposes of this section—

(a)a damages-based agreement is an agreement between a person providing advocacy services, litigation services or claims management services and the recipient of those services which provides that—

(i)the recipient is to make a payment to the person providing the services if the recipient obtains a specified financial benefit in connection with the matter in relation to which the services are provided, and

(ii)the amount of that payment is to be determined by reference to the amount of the financial benefit obtained;

F6(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The agreement—

(a)must be in writing;

[F7(aa)must not relate to proceedings which by virtue of section 58A(1) and (2) cannot be the subject of an enforceable conditional fee agreement or to proceedings of a description prescribed by the Lord Chancellor;]

(b)[F8if regulations so provide,] must not provide for a payment above a prescribed amount or for a payment above an amount calculated in a prescribed manner;

(c)must comply with such other requirements as to its terms and conditions as are prescribed; and

(d)must be made only after the person providing services under the agreement [F9has complied with such requirements (if any) as may be prescribed as to the provision of information].

(5)Regulations under subsection (4) are to be made by the Lord Chancellor and may make different provision in relation to different descriptions of agreements.

(6)Before making regulations under subsection (4) the Lord Chancellor must consult—

(a)the designated judges,

(b)the General Council of the Bar,

(c)the Law Society, and

(d)such other bodies as the Lord Chancellor considers appropriate.

[F10(6A)Rules of court may make provision with respect to the assessment of costs in proceedings where a party in whose favour a costs order is made has entered into a damages-based agreement in connection with the proceedings.]

(7)In this section—

  • payment” includes a transfer of assets and any other transfer of money's worth (and the reference in subsection (4)(b) to a payment above a prescribed amount, or above an amount calculated in a prescribed manner, is to be construed accordingly);

  • claims management services” has the same meaning as in [F11the Financial Services and Markets Act 2000 (see section 419A of that Act)].

[F12(7A)In this section (and in the definitions of “advocacy services” and “litigation services” as they apply for the purposes of this section) “proceedings” includes any sort of proceedings for resolving disputes (and not just proceedings in a court), whether commenced or contemplated.]

(8)Nothing in this section applies to an agreement entered into before the coming into force of the first regulations made under subsection (4).]

[F13(9)Where section 57 of the Solicitors Act 1974 (non-contentious business agreements between solicitor and client) applies to a damages-based agreement other than one relating to an employment matter, subsections (1) and (2) of this section do not make it unenforceable.

(10)For the purposes of subsection (9) a damages-based agreement relates to an employment matter if the matter in relation to which the services are provided is a matter that is, or could become, the subject of proceedings before an employment tribunal.]

[F14(11)Subsection (1) is subject to section 47C(8) of the Competition Act 1998.]

Textual Amendments

F1Words in s. 58AA heading omitted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(11), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F3Words in s. 58AA(1) omitted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(2), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F4Words in s. 58AA(2) inserted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(3)(a), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F5Words in s. 58AA(2) omitted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(3)(b), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F6S. 58AA(3)(b) omitted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(4), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F7S. 58AA(4)(aa) inserted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(5), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F8Words in s. 58AA(4)(b) inserted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(6), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F9Words in s. 58AA(4)(d) substituted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(7), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F11Words in s. 58AA(7) substituted (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 90 (with arts. 106, 107)

F12S. 58AA(7A) inserted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(9), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

F13S. 58AA(9)(10) inserted (19.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10), ss. 45(10), 151(1) (with s. 45(13)); S.I. 2013/77, arts. 2(1)(b), 3(b)

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources