Law firms can utilise funding (whether on a full or partial basis) when instructed on a Damages Based Agreement (DBA). Working closely with three leading costs QCs, Harbour developed a product which allows law firms to work on a DBA but lay off the costs such as counsel, experts and arbitration fees as well as adverse costs.
- The law firm enters into a full DBA with its client, agreeing to take up to 50% of the proceeds, as permitted by the DBA regulations.
- With the client’s full knowledge and consent, the law firm then enters into an agreement with Harbour to share the costs of the case.
The Working Party tasked with reviewing the deficiencies in the DBA Regulations has endorsed this model.
Typically, Harbour pays all disbursements and a proportion of the law firm’s WIP. On success, the proceeds are divided between the law firm and Harbour in proportion to the respective financial contributions made (costs paid by Harbour and WIP foregone by the law firm).