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No win, low fee future for DBAs | News

Zuberi v Lexlaw, a top costs QC confirmed  last week. Nicholas Bacon QC, who acted for the Bar Council as intervener in  Lexlaw, said the ruling would allow ‘greater flexibility’ in DBA arrangements, which is what the government had wanted. He said: ‘Any solicitor doing DBA work should certainly include provision now in the agreement that allows them to be paid something for the case if the client terminates the agreement, or the client breaches it. That is solid, sound, safe territory now… But those who are more adventurous, who might well be doing a whole basket of DBA cases, may well want to put in a clause that says, “if we lose, we’re going to be paid, say, half an hourly rate or a discounted fee”, on the back of that judgment’.

Apportioning civil penalties for housing offences between a company and its directors

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Lawyers hail watershed appeal court ruling on DBAs

Lord Justice Lewison, Lord Justice Newey and Lord Justice Coulson dismissed the appeal in Zuberi v Lexlaw Limited and said that London firm Lexlaw should be paid around £125,000 costs for work on a claim against a bank. Its client, Shaista Zuberi, had sought to terminate the DBA before the case concluded, withholding any payment on the basis it was unenforceable. The High Court held that the DBA was not unenforceable as that would be wholly inconsistent with the parliament’s intent when it extended the scope of these agreements to civil litigation in 2013. The Court of Appeal made clear that termination fees are not caught by the DBA regulations, in a ruling that could open the way for many more cases to be funded through this method.

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