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Key definition
Damages definition

What does Damages mean? In legal practice, damages are a money award ordered by a court to compensate a claimant (England & Wales, Northern Ireland) or pursuer (Scotland) for loss caused by breach of contract, tort/delict or a statutory wrong. The remedy is developed mainly by case law across the UK and Ireland, with some statutory modification. The aim is primarily compensatory: in tort/delict, to put the person in the position they would have been in but for the wrong; in contract, to protect the expectation interest (and sometimes the reliance interest). Heads of loss include general and special damages (common in personal injury),...

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Employment tribunal damages-based agreements: practitioners’ guide to enforceability, caps, calculation, termination, appeals and compliance under the DBA Regulations 2013 and CLSA 1990

Practice notes
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This Practice Note sets out how the Damages-based agreement (DBA) framework functions in the context of employment cases. Separate provisions govern DBAs in wider civil litigation and in Personal injury matters, and those areas fall outside the scope of this Practice Note. For additional assistance on those topics, refer to the Practice Notes: Damages-based agreements (DBAs) and Damages-based agreements—personal injury and clinical negligence. For a general overview of litigation funding, see Funding arrangements—overview.

The legal context

Historically, a solicitor having a financial stake in the result of a client’s contentious matter was widely regarded as objectionable: to provide unbiased and proper advice, the solicitor was expected to remain disinterested and to receive the same remuneration whether the case succeeded or failed. Any bargain that turned on future events (for example, a fee contingent upon the outcome, or a contingency fee arrangement) clearly conflicted with that principle and was treated as ‘maintaining’ the proceedings. Where the bargain involved sharing in the proceeds of the litigation, it was described as ‘champertous’. Maintenance and champerty were once treated as criminal offences and, even after their abolition as crimes, they persisted as torts, continuing to render such solicitor–client agreements entirely unenforceable, until so-called conditional fee...

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Web page updated on 21/05/2026

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