Part 2

Litigation funding and costs

Payments for legal services in civil cases

Conditional fee agreements: success fees
44
1
In section 58 of the Courts and Legal Services Act 1990 (conditional fee agreements), in subsection (2)—
a
omit “and” after paragraph (a), and
b
after paragraph (b) insert
and
c
references to a success fee, in relation to a conditional fee agreement, are to the amount of the increase.
2
After subsection (4) of that section insert—
4A
The additional conditions are applicable to a conditional fee agreement which—
a
provides for a success fee, and
b
relates to proceedings of a description specified by order made by the Lord Chancellor for the purposes of this subsection.
4B
The additional conditions are that—
a
the agreement must provide that the success fee is subject to a maximum limit,
b
the maximum limit must be expressed as a percentage of the descriptions of damages awarded in the proceedings that are specified in the agreement,
c
that percentage must not exceed the percentage specified by order made by the Lord Chancellor in relation to the proceedings or calculated in a manner so specified, and
d
those descriptions of damages may only include descriptions of damages specified by order made by the Lord Chancellor in relation to the proceedings.
3
In section 58A of that Act (conditional fee agreements: supplementary), in subsection (5) after “section 58(4)” insert “ , (4A) or (4B) ”.
4
For subsection (6) of that section substitute—
6
A costs order made in proceedings may not include provision requiring the payment by one party of all or part of a success fee payable by another party under a conditional fee agreement.
5
In section 120(4) of that Act (regulations and orders subject to parliamentary approval) after “58(4),” insert “ (4A) or (4B), ”.
6
The amendment made by subsection (4) does not prevent a costs order including provision in relation to a success fee payable by a person (“P”) under a conditional fee agreement entered into before the day on which that subsection comes into force (“the commencement day”) if—
a
the agreement was entered into specifically for the purposes of the provision to P of advocacy or litigation services in connection with the matter that is the subject of the proceedings in which the costs order is made, or
b
advocacy or litigation services were provided to P under the agreement in connection with that matter before the commencement day.
S. 44 partly in force; s. 44 not in force at Royal Assent, see s. 151(1); s. 44 in force at 19.1.2013 for specified purposes and at 1.4.2013 except in relation to specified proceedings by S.I. 2013/77, arts. 2(1)(a), 3(a) (with art. 4)
S. 44 in force at 6.4.2016 in so far as not already in force except in relation to proceedings relating to a claim for damages in respect of diffuse mesothelioma and publication and privacy proceedings by S.I. 2016/345, art. 2
S. 44 in force at 6.4.2019 in relation to publication and privacy proceedings by S.I. 2018/1287, art. 2