Funding the pursuit of a negligence claim

Contingency Agreements or “Damages based Agreements”

Like CFAs, contingency agreements provide that the ability of an adviser to render a charge is conditional upon achieving a ‘success’. Unlike CFAs, fees that become payable under a contingency agreement are not normally based on the time spent in ‘winning’ the case, but rather the agreement provides for a fee that represents a percentage of the amount ‘won’. In other words, the fee is normally a slice of the damages ‘won’. For that reason, contingency agreements are also sometimes referred to as ‘damages based agreements’.