2. The 2010 regulations continue to apply to all damages agreements that were enforced by these regulations and were signed prior to the effective date of these regulations. (ii) Damage to heritage damage other than future heritage damage, A Damages based Agreement has been a very popular legal financing model in the United States in recent years, but has only recently been introduced into the British legal system. Lord Justice Jackson recommended the introduction of contingency fees in part because he felt it was desirable for the parties to the proceedings to have maximum financing methods, particularly where CFA success fees and ATE insurance premiums can no longer be recovered from the losing party (see "Conditional Pricing Agreements (CFA) / After the Event (ATE) Insurance"). (b) subject to paragraph 4, an agreement based on damages cannot provide for payment beyond 25% of the combined sums covered in paragraph 2, point (a) (ii) and (ii) which are ultimately recovered by the customer, including vat. It was recognized that compensation agreements do not appeal to lawyers because of the risk to which they are exposed. This has resulted in a decrease in the number of agreements (with the restriction of individuals` access to legal advice in companies). A compensation agreement (DBA) is a form of "no-Win, no fee" agreement between the lawyer and the client, under which an agreed portion of the sums claimed by the client in a dispute is paid to the lawyer. in the case of the right to personal injury, the amount to be paid by a customer, including VAT, may not exceed 25% of the total amount of damages claimed by the client during the procedure due to pain and loss of pain and damage (other than future property damage), net of any amounts recovered by the compensation unit. The 25% cap applies only to first instance claims or proceedings; and an agreement based on damages on an employment issue. Costs may be refundable as opposed to opposing parties on a traditional basis (reasonable hourly rate, time and disbursements) and not by reference to contingency tax.

If the tax agreed under the DBA exceeds what should be paid on a conventional basis, the applicant pays this difference of his prejudice to counsel. If successful, the legal fees are recovered by the losing party on a conventional basis, but to the extent that the amount owed to the lawyer under the DBA exceeds what would be refundable under a normal pricing agreement on the basis of hourly rates, the retained client makes the difference that goes to the lawyer on the amounts recovered.