Law Society Conditional Fee Agreement Guidance

The Law Society of Scotland Success Fee Agreement Party has developed a model that will be used in the event of personal injury to help the profession comply with the 2020 rules and to provide a gold standard agreement for continued use of the profession. New agreements on success fees will come into force on 27 April 2020 to ensure that the parties to the proceedings in Scotland have a better understanding of the costs of the legal action and provide Scottish lawyers with more attractive methods for entering into successful fee exchange agreements. You can download here the agreement on style success fees updated on October 20, 2020, which the profession can adapt for use in other jurisdictions, an accompanying explanation and communication on cooling. Lawyers are reminded that they must issue the client with the success fee agreement at the same time as the cooling notice. An example of a conditional fee agreement is available on the Law Society website at www.lawsociety.org.uk/support-services/documents/model-conditional-fee-agreement. Conditional pricing agreements should always contain “what you need to know” guidelines before entering into such an agreement. You require specific contractual provisions to make them enforceable, otherwise you will be liable for your lawyer`s legal costs. The caps provide greater security for clients who enter into successful fee contracts – Regulation 2 sets ceilings for success fees for various legal areas and it should be noted that successful fee agreements cannot be used in family proceedings unless the success fees are included in a speculative agreement and not based on a compensation agreement. The Law Society`s Model Conditional Royalty Agreement (CFA) is currently being updated and is not being published at this time. Regulations provide consumer protection in the form and content of what an agreement between the lawyer and the client must include for it to be valid. The conditional royalty and guidelines agreement was last updated in 2014.

The model is intended to be used for personal injury and clinical negligence claims. The 2018 Enforcement Act 2018 on a client`s application to pay his lawyer sets the amount of success fees that a lawyer can claim from the client for the damage. Initially set up in 2018 by the Professional Practice Committee and the Civil Justice Committee to develop a style-based success fee agreement that will be submitted to the Scottish Government for review. The agreement was then replaced by the Scottish Government`s consultation on the success fee agreements. The working group responded to the consultation and continued to work closely with the Scottish Government, which contributed to the draft regulations. The task force has worked hard to reconcile the interests of the profession while protecting the public interest. Since the completion of the regulations, the working group has amended the previous draft agreement on success fees to ensure that it complies with the 2020 provisions. The regulations offer Scottish lawyers the opportunity to reach an agreement either through a speculative royalty agreement or through an agreement on damages.

In the case of speculative royalty agreements, if a right is successful, they may ask the opponent, in addition to reimbursement of the costs, to increase these costs to be paid from the damage suffered by the customer. Alternatively, in compensation contracts, legal fees can be calculated as a percentage of the damage – in this case, the lawyer would receive an agreed percentage of the damages recovered in addition to the costs collected by the opponent.