Don’t let potential legal fees scare your clients away from recovering sums due to their business

David Alexander – 2 L website

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 in the Personal Injuries sector, where funding cases has always been a problem for pursuers. However, these agreements can have equal force in the Commercial Litigation and Insolvency worlds, especially in these difficult times. The majority of businesses are experiencing cash flow difficulties. As a result, they have little funds available to finance the instruction of litigation to recover sums rightfully due to their business. Similarly, Insolvency Practitioners are often left with large “books of debts” to recover with little to no funds to recover same. These arrangements offer a solution in these circumstances.

The Debt Recovery Department at Gilson Gray has offered a number of these “no win/no fee” agreements to our business clients this past year. We have managed to make significant recoveries for our clients, quickly. The recoveries have sustained our clients, have protected their livelihoods and have allowed them to thrive in these difficult times.

If you would like further information regarding the topics discussed in this blog, please contact:

David Alexander by email: 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.

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