It has been almost a year since the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 (Success Fee Arrangements) Regulations 2020 came into force. The Regulations removed the prohibition upon Scottish Solicitors entering into what were called “Damages Based Agreements” with their clients. That is, “no win/no fee” arrangements whereby the size of the fee chargeable would be calculated by reference to a percentage of the sums recovered.
This change was long overdue. The Regulations have provided a flexible approach to litigation funding that Scottish Solicitors had not previously been able to offer their clients. They have increased the funding options available to businesses wishing to recover sums due to them. They have helped to remove the unpredictability of legal fees, a major stress for clients.
These agreements have made a big impact on the Personal Injuries sector, where funding cases has always been a problem for pursuers. However, these agreements can have equal force in the Insolvency world where liquidators are often left to recover large books of trading debts with little “up front” cash to fund the same.
The Debt Recovery Department at Gilson Gray has offered a number of these “no win/no fee” agreements to our insolvency clients this past year. We have managed to make significant recoveries in those cases, and quickly.
If you are an Insolvency Practitioner and would like to discuss the recovery of debts due to any of the companies under your control, please do not hesitate to contact a member of the Debt Recovery Team.
If you would like further information regarding the topics discussed in this blog, please contact:
David Alexander by email: firstname.lastname@example.org or by phone: 07841 920 089 / 0131 516 5362
You can also visit our Debt Recovery Team page by clicking here.
The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.