DAMAGES BASED AGREEMENTS DO NOT EXTEND TO DEFENDANTS: “HEADS I WIN TAILS YOU LOSE” ARRANGEMENTS DO NOT FIND FAVOUR WITH THE COURT OF APPEAL

In Candey Ltd v Tonstate Group Ltd & Ors [2022] EWCA Civ 936 the Court of Appeal held that a Damages Based Agreement cannot be used between a solicitor and a defendant who did not have a counterclaim.   For a DBA to be valid a party has to obtain a financial benefit from the litigation. The rete...