‘It’s an extraordinary thing – hundreds of lawyers should have entered into damages-based agreements (DBAs) by now.’
So says Leslie Perrin, former managing partner and senior partner of Osborne Clarke, who is now chairman of litigation funding group Calunius Capital, with around £40m of capital to invest in disputes.
Instead, DBAs, which came into force under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) and entitle a lawyer to claim a percentage of their client’s damages by way of fees, have failed to take off at all. Perrin adds: ‘The confusion around the regulations has been such that I don’t think more than a handful of DBAs have been entered into all across the country. There’s so much ambiguity and grief for the first people going down that road and disputes lawyers are unanimous in holding this position.’