Funding arrangements—Jackson Reforms [Archived]
Funding arrangements—Jackson Reforms [Archived]

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

  • Funding arrangements—Jackson Reforms [Archived]
  • Changes
  • Content covered
  • Conditional fee agreements
  • Damages based agreements
  • Costs insurance

ARCHIVED: This Practice Note is archived and is for historical purposes only.

The underlying legislation dealing with the changes to the funding arrangements are set out in Part 2 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) with consequential changes in the Courts and Legal Services Act 1990 (CLSA 1990).


The changes in relation to funding arrangements are set out in:

  1. conditional fee agreements (CFAs):

    1. LASPO 2012, s 44 deals with success fees in CFAs, and sets out the conditions required for a valid CFA with a success fee and provides that success fees will no longer be recoverable from the unsuccessful party. The relevant provision for that is s 44(4), which provides: 'A costs order made in proceedings may not include provision requiring the payment by one party of all or part of a success fee payable by another party under a conditional fee agreement'

    2. the Conditional Fee Agreements Order SI 2013/689 sets out the transitional arrangements for success fees in CFAs where the CFA was entered into prior to 1 April 2013 but success fees are sought after that time

  2. damages based agreements (DBAs):

    1. LASPO 2012, s 45 amends CLSA 1990, s 58AA so that DBAs are no longer limited to employment cases. Since 1 April 2013 is possible to enter into DBAs for other types of claims

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