Jurisdiction(s):
United Kingdom

DBAs require recovery in the proceedings: declaratory relief insufficient and counsel’s fees cannot be added; Reeves v Frain [2025] EWHC 2311 (KB), England and Wales

Published on: 30 September 2025

Published by a LexisNexis Dispute Resolution expert

Legal News

Article summary

What are the practical implications of this case?

This ruling reiterates that damages-based agreements (DBAs) are permissible only where the claimant seeks damages, or another financial remedy, flowing directly from the claim itself. If that criterion is not met, the DBA is unenforceable and no fees incurred under it are recoverable. Accordingly, in proceedings such as these, where declaratory relief is pursued, any consequential financial advantage arises outside the litigation and does not constitute sums recovered for DBA purposes. The judgment also demonstrates that DBAs can be an effective mechanism for funding disputes and facilitating access to justice, but careful drafting is vital to ensure compliance with the regulatory framework and to preserve enforceability. The courts are plainly reluctant to sever offending provisions within a retainer and will apply the regulations strictly, even if that produces a result that may appear unduly harsh.

What was the background?

The claim concerned a disputed probate matter arising from contested probate proceedings. It was brought in the context of those proceedings, and the issues arose against that procedural backdrop as described within the contested probate claim therein...

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