Damages Based Agreement Personal Injury
- 20/03/2023
When you suffer an injury due to someone else`s negligence, it can result in a range of consequences, from physical pain and emotional trauma to financial losses and more. Under these circumstances, filing a personal injury lawsuit can be an effective means of getting the compensation you deserve. One of the possible ways of doing so is through a damages-based agreement.
A damages-based agreement (DBA) is a type of contingency fee agreement between a lawyer and a plaintiff. It is an arrangement where the lawyer`s fee is calculated based on a percentage of the awarded damages. In other words, if the plaintiff does not win the case, the lawyer does not receive any payment. A DBA allows plaintiffs to pursue a legal case without the upfront costs of paying their attorney. Instead, the attorney receives compensation only if the plaintiff is successful.
In the context of personal injury cases, a damages-based agreement can be a viable option for those who cannot afford to pay their lawyer`s fees out of pocket. Additionally, it can provide an incentive for the lawyer to pursue the case as diligently as possible, as their payout is directly tied to the outcome of the case.
It`s essential to note that the use of DBAs in personal injury cases is subject to the DBA Regulations of 2013. These regulations stipulate that the maximum percentage of damages a lawyer can charge is 50%. However, this percentage can be lowered by the court if it is deemed excessive.
When considering whether to pursue a damages-based agreement, it`s essential to understand the pros and cons. On the one hand, DBAs can be an affordable way to pursue a legal case. On the other hand, they can result in higher attorney fees if the awarded damages are significant.
In conclusion, a damages-based agreement can be an effective way for plaintiffs to pursue a personal injury case without incurring upfront legal fees. However, it`s crucial to weigh the pros and cons and to consult with an experienced attorney before moving forward with a DBA. By doing so, you can ensure that you are making the right decision for your particular case and situation.