Jurisdiction(s):
United Kingdom

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),...

DBAs under the 2013 Regulations (England and Wales): Worked examples comparing early settlement and trial, and how damages, inter partes costs, counsel's fees and VAT are treated

Published by a LexisNexis Dispute Resolution expert

Practice notes

This Practice Note sets out two straightforward examples showing how a Damages-based agreement (DBA) functions in practice by reference to the Damages-Based Agreements Regulations 2013 (DBA Regulations 2013), SI 2013/609. The purpose of these examples is to help you grasp the operation of a DBA and the scope for disagreement that can emerge between you and a client depending on whether the dispute concludes early or proceeds all the way to trial.

Example 1 Scenario

A solicitor advises their claimant client that the claim against the defendant has a Damages value of £150,000. The solicitor and client agree a DBA under which, if the client succeeds, the sum payable by the client to the solicitor is fixed at 50% of any damages recovered. The claimant’s solicitor sends a Pre-action protocol letter to the defendant and the matter settles for £90,000 without recourse to proceedings. On a time-costed basis, the claimant’s solicitor would have billed £5,000 for the work carried out. The defendant also agrees to meet those costs.

How are the damages and costs dealt with? The DBA payment is set at £45,000, being 50% of the damages received on settlement...

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Joseph Evans

Charles Russell Speechlys LLP

Joseph is a solicitor-advocate who undertakes all aspects of commercial litigation work, specialising in insolvency disputes.Joseph assists officeholders with their investigations into insolvent companies and individuals, both in the UK and overseas, with a view to recovering misappropriated funds for the estates. Joseph works on cases involving fraud, misfeasance, negligence and tax avoidance. Joseph often acts for claimants on a contingent basis where appropriate. Joseph also has a specialist practice advising stakeholders on structuring alternatively-funded cases, including implementing litigation funding and CFA/DBA arrangements....

Web page updated on 21/05/2026

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