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DBAS in contentious litigation: damages-based adolescence

Liability Risk and Insurance

DBAS in contentious litigation: damages-based adolescence

By Tom Stapleton, partner, Kennedys London and Donald McDonald, solicitor, Kennedys London

Damages-Based Agreements (DBAs) may finally be coming of age. When they do, they may transform the claims landscape facing insurers. DBAs were introduced for contentious litigation in April 2013, but to date their popularity has been limited because of the regulatory position. Recently their boundaries have been tested in the courtroom. In the future we expect to see an increasing number of claims where the legal team acts under a DBA and is incentivised by a share of the spoils.

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