CONDITIONAL FEE AGREEMENT
Agreement dated:
Between:
- GUISE, of 5 French Place, LondonE1 6JB (“Guise”); and
- { } of { } (“the Client”).
IT IS AGREED AS FOLLOWS:
- Definitions
In this agreement the following words shall have the following meanings:
basic charges
/ Guise charges for the legal work carried out in connection with the Claim.Claim / The Client's demand for damages or payment of money as briefly described in the first schedule to this agreement, whether or not Court proceedings are issued.
Counterclaim / A Claim that the Opponent makes against the Client in response to the Claim.
Damages / Money that is awarded to the Client by a Court decision or that the Opponent agrees to pay the Client in settlement of the Claim.
Disbursements / Payments made by GUISE on behalf of the Client including, for example, Court fees, barrister’s fees, expert’s fees and travelling expenses.
interim damages / Money that the Court orders the Opponent to pay or the Opponent agrees to pay to the Client pending a final settlement or decision of the Court.
interim hearing / A Court hearing that is not final.
lien / GUISE’s right to keep all papers, documents, money or other property held on behalf of the Client until all money due to GUISE is paid. A lien may be applied after the termination of this agreement.
Lose / The Court dismisses the Claim or the Client withdraws or discontinues the Claim on Guise’s advice.
opponent / The person or company against whom the Claim is made identified by such in the first schedule to this agreement.
part 36 offer or payment / An offer to settle the Claim made in accordance with Part 36 of the Civil Procedure Rules.
success fee / The amount of the increase on the basic charges payable to GUISE if the Client wins, and that GUISE will seek to recover from the Opponent. The amount of the percentage increase and the reasons for calculating the success fee at this level are set out in schedule 2.
Win / The Claim for damages is finally decided in favour of the Client, whether by a Court decision or an agreement to pay the Client’s damages. “Finally” means that the Opponent is not allowed to appeal against the Court decision, or has not appealed in time, or has lost any appeal.
- Scope of Agreement
2.1This agreement covers
(a)The Claim against the Opponent.
(b)Any appeal by the Opponent.
(c)Any appeal by the Client against an interim order.
(d)Any proceedings taken to enforce a judgment, order or agreement against the Opponent.
2.2This agreement does not cover
(a)Any counterclaim against the Client.
(b)Any appeal by the client against a final judgment or order.
- Payment terms
3.1If the Client wins, the Client shall pay GUISE’s basic charges, disbursements and a success fee. The amount of the success fee shall not be based on or limited by the damages.
3.2If the Opponent makes a Part 36 offer or payment which the Client rejects and, on GUISE’s advice, the Claim proceeds to trial where the Client wins less than the amount of the Part 36 offer or payment, Guise shall not be entitled to a success fee in respect of work done after the date of receipt of the notice of the Part 36 offer or payment but shall still be entitled to payment of their basic charges and disbursements for work done during that period.
3.3If the Client recovers interim damages, GUISE may require the Client to pay their disbursements incurred up to that point and a reasonable amount on account of expected future disbursements.
3.4If the Client loses an interim hearing during the course of the proceedings the Client may be required to pay the Opponents costs of that hearing.
3.5If the Client succeeds on an interim hearing, then GUISE shall be entitled to payment of their basic charges and disbursements related to that hearing at that point and to a success fee on those basic charges if the Client eventually wins.
3.6If the Client loses, the Client shall not be liable to pay Guise’s charges but shall still pay GUISE disbursements.
3.7If the Client terminates this agreement before the claim is concluded, the Client shall pay GUISE basic charges and disbursements. If the Client subsequently wins, the Client shall also pay a success fee.
- Basic Charges
4.1Basic charges cover work done from the date of this agreement until this agreement is terminated.
4.2Basic charges are calculated at the rates specified in sub-clause 3 below by reference to the time spent on the matter. Routine letters and telephone calls are charged as units of one tenth of an hour. Other letters and telephone calls will be charged on a time basis.
4.3The hourly rates applicable are:
(a)Solicitors with over 4 years experience after qualification: £
(b)Other solicitors, legal executives and other staff of equivalent experience: £
(c)Trainee solicitors and other staff of equivalent experience: £
4.4We add VAT, at the rate that applies when the work is done, to the total of the basic charges and success fee.
- GUISE Responsibilities
GUISE shall exercise reasonable skill and care in advising the Client with regard to the Claim and in particular in
(a)Always acting in the Client’s best interests, subject to their duty to the Court.
(b)Explaining to the Client the risks and benefits of taking legal action.
(c)Giving the Client advice about whether to accept any offer of settlement.
(d)Giving the Client information about the likely costs of the Claim.
- The Client’s Responsibilities
The Client agrees
(a)To give GUISE adequate instructions in sufficient time to enable Guise to carry out their work properly.
(b)Not to ask GUISE to work in an improper or unreasonable way.
(c)Not deliberately to mislead GUISE.
(d)To co-operate with GUISE.
(e)To permit any expert examination that may be required and to attend any Court hearing.
(f)Subject to clause 8.2, to pay GUISE’s disbursements and such reasonable amounts as they may from time to time request on account of expected future disbursements.
- Recovery of Costs
7.1If the Client wins, the Client and GUISE shall co-operate to recover the basic charges, disbursements, success fee and any insurance premium from the Opponent either by agreement or, if the amount cannot be agreed, by the Court assessing the amount which is recoverable.
7.2If the amount agreed or assessed by the Court does not cover all GUISE basic charges and disbursements, the Client shall pay the difference.
7.3If part of the success fee relates to the cost to GUISE of postponing receipt of their basic charges and disbursements, that part of the success fee shall be payable by the Client.
7.4The Client agrees that, after winning, the reasons for setting the success fee at the amount stated in schedule 2 may be disclosed
(a)To the Court and to any other person required by the Court.
(b)To the Opponent for the purpose of obtaining the Opponent’s agreement to pay the success fee.
7.5If the Court carries out an assessment and disallows any of the success fee percentage on the grounds that it is unreasonable in view of what GUISE knew or should have known at the date of this agreement, then that amount ceases to be payable by the Client unless the Court is satisfied that the Client should pay it.
7.6If GUISE agrees with the Opponent that the success fee is to be paid at a lower percentage than is set out in schedule 2, then the success fee percentage will be reduced accordingly unless the Court is satisfied that the full amount should be paid by the Client, in which case the Client will pay the difference.
7.7The Client agrees and undertakes not to accept or to instruct GUISE to accept any offer in respect of costs if it includes payment of the success fee at a lower rate then is set out in schedule 2.
7.8For the avoidance of doubt, if the Client wins the Client is liable to pay all GUISE’s basic charges, disbursements and success fee whether or not they are recovered from the Opponent, although full credit will be given for all amounts recovered from the Opponent.
7.9In the event that the Client receives a cheque from the Opponent which is made payable to the Client, the Client agrees
(a)To pay such cheque into a designated account.
(b)To pay GUISE basic charges, success fee, any insurance premium, any remaining disbursements and VAT out of the proceeds of the cheque.
(c)The balance of any such money shall be paid to the Client.
7.10Guise shall be entitled to retain for their own benefit any interest that the Opponent pays on the charges
- The Insurance Policy
8.1The Client may be liable to pay the Opponent’s costs in the following circumstances:
(a)If the Opponent succeeds on an interim hearing, the Client may be required to pay the Opponent’s costs of that hearing.
(b)If the Client is awarded damages that are less than the amount of a Part 36 offer or payment which has been rejected, the Client may be liable to pay the Opponent’s costs incurred after receipt of the notice of Part 36 offer or payment.
(c)If the Client loses, the Client may be liable to pay all the Opponent’s costs.
8.2If the Client is insured against payment of the disbursements and/or the Opponent’s costs, the Client authorises GUISE to claim such disbursements and Opponent’s costs from the insurer and to receive payment from the insurer on behalf of the Client.
- Termination
9.1The Client may terminate this agreement by notice in writing at any time.
9.2Guise may terminate this agreement by notice in writing to the Client if the Client is in breach of his responsibilities as set out in clause 6 above.
9.3If this agreement is terminated pursuant to sub-clauses 9.1 or 9.2 above, Guise can then at their option by notice in writing to the Client either
(a)require the Client to pay the basic charges and disbursements forthwith whether or not the Client subsequently wins; or
(b)To pay the basic charges and disbursements and success fee if the Client continues with the Claim and wins but nothing if the Client loses.
9.4Guise may terminate this agreement if in GUISE’s opinion the Client is unlikely to win. In this event the Client shall pay GUISE’s disbursements but shall not be liable to pay GUISE’s basic charges.
9.5Merricks may terminate this agreement if the Client rejects GUISE’s advice regarding settlement of the Claim. In this event the Client shall
(a)Pay GUISE basic charges and disbursements.
(b)Pay the success fee if the Client proceeds with the Claim and wins.
9.6GUISE may terminate this agreement if the Client fails to pay the insurance premium when requested to do so.
9.7This agreement shall terminate automatically if the Client dies before the Claim is concluded. In this event GUISE shall be entitled to recover their basic charges and disbursements up to the date of death from the Client’s estate.
9.8Following termination of this agreement, GUISE will apply to the Court to have their name removed from the record of any Court proceedings in which they are acting unless agreement has been reached between GUISE and the Client that GUISE shall continue to act on other terms.
9.9Guise shall be entitled to exercise a lien over any papers, documents, money or other property held on the Client’s behalf unless another solicitor instructed by the Client undertakes to pay GUISE all amounts owed including a success fee if the Client wins.
- Confirmation of Explanations
By their signatures on this agreement, the Client and GUISE specifically confirm that GUISE have verbally explained to the Client the matters set out in paragraphs (a) to (e) below before this agreement was signed, and GUISE specifically confirm in writing the matters set out at (e) below in schedule 2 to this agreement:
(a)The circumstances in which the Client may be liable to pay GUISE’s charges and disbursements.
(b)The circumstances in which the Client may seek assessment of GUISE’s charges and disbursements and the procedure for doing so.
(c)Whether GUISE consider that the risk to the Client of becoming liable for any costs in the proceedings contemplated by this agreement is insured under an existing contract of insurance.
(d)Other methods of financing those costs, including private funding, community legal service funding and legal expenses insurance.
(e)i.In all the circumstances, on the information currently available to GUISE, it is GUISE’s opinion for the reasons detailed in schedule 2 to this agreement that a contract of insurance with { } is appropriate.
- In any event, GUISE believes it is desirable for the Client to insure the Opponent’s charges and disbursements in case the Client loses.
- Guise do not have an interest in recommending this particular insurance agreement.
Signed on behalf of the Client …………………………………………….
Signed on behalf of GUISE …………………………………………….
This agreement complies with the Conditional Fee Agreements Regulations 2000 (S.I.2000 No. 692).
SCHEDULE 1
The Claim
{Please set out brief details of the Claim including the name (and address if known) of the Opponent}.
SCHEDULE 2
The Success Fee
The success fee is set at { }% of basic charges.
The percentage reflects the following:
(a)The fact that if the Client wins GUISE will not be paid their basic charges until the end of the Claim.
(b)The arrangements made between GUISE and the Client regarding payment of disbursements.
(c)The fact that if the Client loses GUISE will not earn anything.
(d)GUISE’s assessment of the risks of the case, which include the following:
{Please briefly describe the risk involved}
(e){Any other appropriate factors}.
The matters set out at paragraphs (a) and (b) above together make up { }% of the increase on basic charges. The matters at paragraphs (c), (d) and (e) make up { }% of the increase on basic charges. The total success fee is therefore { }% as stated above.
SCHEDULE 3
The Insurance Policy
In all the circumstances and on the information currently available it is GUISE’s opinion that a contract of insurance with { } is appropriate to cover the Opponent’s charges and disbursements in case the Client loses. This is because {please briefly explain}.
GUISE is not however an insurance broker and cannot give advice on all products which may be available.
GUISE CFA