Conditional fee agreements—success fees
Conditional fee agreements—success fees

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Conditional fee agreements—success fees
  • What are success fees?
  • What is the meaning of 'success' in a CFA?
  • Requirements to be satisfied if including a success fee in a CFA
  • What is an appropriate success fee percentage?
  • Appeals against decisions in respect of success fee percentages
  • Success fee is payable by the party to the CFA
  • Success fee is payable by the party to the CFA—protected parties
  • Is the success fee payable by the other side—CFAs under the old regime ie prior to 1 April 2013?
  • Success fees and proportionality
  • more

This Practice Note considers success fees, a form of fee, which may be payable as a consequence of a successful claim where that claim has been funded by the use of a conditional fee agreements (CFA). A CFA is a type of funding agreement between a client and solicitor which provides that the solicitors' costs will only be payable if the client is successful. To compensate for this element of risk, CFAs can provide for the payment of a 'success fee' if the client is successful. This is set out as a percentage of the total solicitors' costs payable. This Practice Note considers what is meant by the term success fee and whether such fees are recoverable. It considers what constitutes a 'success' to trigger payment of the success fee as well as requirements to be satisfied if including a success fee in a CFA, what is an appropriate success fee percentage, appeals against decisions in respect of success fee percentages and whether the success fee under the funding agreement is payable by the other side as costs as well as the transitional arrangements or exceptions which apply post 1 April 2013 under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012).

For further guidance on dealing with CFAs, see Practice Notes:

  1. Conditional fee agreements—definition and requirements

  2. Types of