The Hybrid Contingency Fee Agreement emerged as a sophisticated solution to balance access to justice with law firm commercial viability under English and Welsh law. This agreement type combines traditional hourly billing with success-based fees, offering clients reduced initial costs while maintaining lawyer compensation. It's particularly useful in complex commercial litigation where substantial damages may be recovered. The agreement must comply with strict regulatory requirements, including the Damages-Based Agreements Regulations 2013 and LASPO 2012, making it essential to carefully structure terms around fee caps, success criteria, and payment mechanisms.
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1. Parties: Identification and details of the solicitor/firm and client
2. Background: Context of the agreement and nature of the legal matter
3. Definitions: Key terms used throughout the agreement including success criteria, fees, and other relevant definitions
4. Scope of Services: Details of legal services to be provided under the agreement
5. Fee Structure: Explanation of hybrid arrangement combining hourly rates and contingency elements, including caps and calculations
6. Success Criteria: Definition of what constitutes success for contingency fee purposes and triggers for payment
7. Payment Terms: When and how payments are to be made, including timing and method of payment
8. Termination: Circumstances and process for ending the agreement, including consequences of termination
1. Insurance Arrangements: Details of after-the-event insurance arrangements and premiums
2. Third Party Funding: Details of any external funding arrangements and their impact on the fee structure
3. Counsel's Fees: Arrangements for barrister fees and how they fit within the hybrid structure
1. Schedule of Hourly Rates: Detailed breakdown of hourly rates for different fee earners and staff levels
2. Schedule of Disbursements: List of anticipated disbursements and how they will be handled within the fee structure
3. Risk Assessment: Analysis of case prospects and risks affecting the contingency arrangement
4. Costs Budget: Estimated costs for different stages of the matter and projected timelines
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