Terminating a damage-based agreement

Other than in employment tribunal cases the damage-based agreements (DBA) regulations make no provision in respect of termination. This is generally regarded as a problem area both for the client and the lawyer. There may be circumstances where, as the case develops, the client regrets having a DBA and others where it is the lawyer who has the regret. In the absence of regulation, therefore, it is a matter of contract and careful drafting. It is instructive to note the decision in Harcus Sinclair (a firm) v Buttonwood Legal Capital Ltd [2013] EWHC 1193 (Ch) that a third-party funder could terminate the funding agreement on the basis of the prospects of success.