Key Takeaways
- Understanding the differences between CFA and DBA agreements in the UK is vital for choosing the most cost-effective no win no fee litigation funding for your legal claim.
- Conditional Fee Agreements (CFAs) and Damages-Based Agreements (DBAs) both let you share risk with your solicitor, but their success fees, deductions, and eligibility can vary dramatically.
- Not all claims are eligible for a damages-based agreement—strict regulatory rules restrict their use by case type.
- Ignoring your funding options could expose you to high legal costs or reduce your potential compensation if the costs outweigh your recovery.
- Under current rules, CFA success fees are generally not recoverable from the losing party in most commercial cases, making clear comparison with DBAs essential.
- Choosing the wrong funding structure could delay or prevent full recovery if deductions consume your compensation.
- Our service is rated Excellent on Trustpilot with over 130 five-star reviews and a 4.9/5 satisfaction rating.
- Strict time limits and court deadlines still apply under both CFA and DBA models—miss these, and your claim may be time-barred.
- Our team gives clear, practical advice on which no win no fee model is best for your needs and guides you through all SRA-compliant funding options.
- Speaking to an experienced no win no fee solicitor in our team ensures you receive tailored, honest advice for your type of dispute.
If you want clarity on which no win no fee agreement will protect your interests, call us on 0207 459 4037 or book a Free Consultation today.
What Is the Difference Between a CFA and a DBA for No Win No Fee Litigation in the UK?
Choosing the right no win no fee funding model can mean the difference between securing a fair settlement and facing unexpected personal liability for legal costs. Not all no win no fee agreements work in the same way; the differences between Conditional Fee Agreements (CFAs) and Damages-Based Agreements (DBAs) in England & Wales are critical and can affect your net recovery, cost exposure, and legal strategy.
Below you will find a direct, strategic comparison of CFA vs DBA options, including how each model operates, their eligibility requirements, success fee and deduction rules, and practical steps to select the best structure for your claim.
For clear guidance tailored to your dispute, our solicitors can provide a rapid, fixed-fee funding review and walk you through every option.
What Is the Difference Between a CFA and a DBA in UK No Win No Fee Litigation?
CFAs and DBAs are the two principal types of no win no fee litigation funding in England and Wales. Both enable claimants to pursue cases with minimal upfront cost, but the way costs are paid on success—and your exposure if you lose—are very different.
A Conditional Fee Agreement (CFA) is an arrangement where your solicitor is paid only if your case is successful. On winning, you pay base legal fees (hourly or fixed) plus a success fee, calculated as an agreed percentage uplift. The law caps the success fee in some claims, such as personal injury, to limit deductions.
A Damages-Based Agreement (DBA) allows your solicitor to take a fixed percentage of your damages if you win. There are typically no legal fees for time or work done if you lose, but you might still pay disbursements, such as court fees or expert reports, and may be responsible for the other side’s costs if unsuccessful.
If you are uncertain which funding option is most suitable, our lawyers can conduct a strategic CFA vs DBA review based on your claim type and risk preference.
How Does a Conditional Fee Agreement (CFA) Work in Practice?
A CFA allows you to pursue claims with no legal fees due unless you win. If successful, you pay:
- Standard base fees (hourly or fixed rates)
- A success fee (an agreed percentage uplift on base costs)
- Disbursements (expenses such as court and expert fees)
CFA success fees are capped by law at 100% of base costs for most commercial cases but lower for personal injury and some specific claims. Importantly, the success fee is paid from your recovery—you seldom recover this fee from the other side in commercial litigation.
After the Event (ATE) insurance is often advised with a CFA. This covers the risk of paying the other party’s costs if you lose, offsetting the main downside of litigation.
To explore funding models for various case types, you may also find our article on Litigation Funding in the UK: How It Works & Suitability for Your Case helpful.
What Is a Damages-Based Agreement (DBA) and When Can It Be Used?
A DBA is a contingency fee arrangement where your solicitor’s only fee is a fixed percentage of any damages you recover, typically capped at 50% in commercial claims. If you lose, you usually owe no legal fees for the work done, though you remain liable for certain expenses and may owe the other side’s legal costs.
DBAs align your solicitor’s interests closely with your own. They are often suited to high-value, straightforward commercial disputes or where the claimant is unable to risk significant upfront or ongoing legal spend.
Which Types of Claims Are Eligible for a DBA in England & Wales?
DBAs are permitted, with restrictions, in:
- Most commercial claims (e.g. business disputes, partnership and shareholder actions)
- Debt recovery and business torts
- Certain employment tribunal disputes
DBAs cannot be used in:
- Most family or criminal cases
- Many professional negligence claims and some types of complex litigation
If you are unsure whether your claim type is DBA-eligible, our specialist solicitors can quickly advise on permitted funding structures for your case.
You may also find our guide on Damages-Based Agreements Explained: No Win No Fee Legal Help UK useful for more detail on how DBAs work in practice.
CFA vs DBA UK: Key Differences, Costs, and Success Fees Compared
Although both CFAs and DBAs reduce risk for claimants, their mechanics differ in several ways:
- Payment Method: Under a CFA, you pay your solicitor’s base fee and success fee (usually deducted from damages) if you win. Under a DBA, the solicitor takes a fixed percentage of your final recovery (up to 50% in most commercial cases).
- Risk Profile: Both structures mean you generally owe nothing if you lose, except for disbursements and possibly opponent’s costs.
- Legal Costs Recovery: The losing party rarely pays your CFA success fee in commercial cases. Under a DBA, you will never recover your solicitor’s fee from the other side.
- Fee Calculation: CFA success fees are a percentage of legal fees; DBA deductions are a set cut of your damages.
If these calculations seem complex, our lawyers provide transparent, side-by-side projections to empower your final choice.
How to Decide: Which No Win No Fee Option Is Right for My Dispute?
Making the right funding choice requires a careful look at your claim, your resources, and your approach to risk.
Step-by-Step Guide to Choosing Between CFA and DBA
- Check Eligibility: Confirm your claim type qualifies for a DBA (not all do).
- Estimate Net Recovery: Calculate what you would keep after CFA fees or DBA percentage is applied, factoring in disbursements and insurance.
- Request Proposals: Have each solicitor present both CFA and DBA options with full written breakdowns and assumptions.
- Consider Insurance Costs: Price in ATE or other policies to cover adverse costs risk.
- Plan for Settlements: Ask how early or partial settlements impact deductions in each arrangement.
- Choose for Certainty: Decide which structure aligns best with your risk appetite and financial goals.
If you are unsure which model maximises your net outcome, our specialist solicitors provide fixed-fee agreement reviews, giving you clarity and peace of mind.
What Laws and Deadlines Apply to CFAs and DBAs in England & Wales?
Funding agreements in the UK are carefully regulated to safeguard claimants and ensure solicitor compliance.
Key Regulations and SRA Rules for No Win No Fee Agreements
- CFAs: Governed by the Courts and Legal Services Act 1990 (sections 58/58A) and the Conditional Fee Agreements Order 2013, setting limits and required contract terms.
- DBAs: Controlled by the Damages-Based Agreements Regulations 2013 and section 58AA Courts and Legal Services Act 1990. The maximum is 50% in most commercial claims and strict consumer protections apply.
- Solicitors Regulation Authority (SRA): Imposes an absolute duty to give full cost, risk, and eligibility disclosure to clients—breaches can render agreements unenforceable.
- Advertising Standards Authority (ASA): Regulates “no win no fee” marketing claims to prevent misleading information.
Time Limits and Certification
- The Limitation Act 1980 provides strict time limits to bring claims—normally 6 years for contract or tort, but shorter or longer in special cases (such as insolvency, professional negligence, or latent damage).
- If you miss the limitation period, the funding agreement is worthless—courts will strike out claims that are out of time, regardless of funding.
What Do the Courts Say About Conditional Fee and Damages-Based Agreements?
Courts in England and Wales have shaped the enforceability and fairness of CFA and DBA arrangements in several leading cases:
| Case | Facts | Outcome | Why It Matters |
|---|---|---|---|
| Herbert v HH Law Ltd [2019] EWCA Civ 527 | Client challenged a CFA success fee deduction | Court required fair, transparent calculation and client protection | Ensures fairness and caps to protect clients from excessive deductions |
| Zuberi v Lexlaw Ltd [2021] EWCA Civ 16 | Whether a DBA in a commercial claim was valid | Court upheld the DBA as binding and lawful | Affirms commercial DBAs are enforceable if compliant |
| A & Anor v Royal Bank of Scotland plc [2021] EWHC 752 (Ch) | DBA-charged fees in complex financial litigation scrutinised | Court reviewed strict regulatory requirements | Demonstrates the importance of clear, enforceable funding terms |
| Jones v Spire Healthcare Ltd [2016] EWCA Civ 61 | Can a CFA success fee be recovered from opponent? | Ruled usually not recoverable in commercial claims | The client must account for deductions from their own award |
When funding arrangements fail basic fairness or legal transparency, the courts may set them aside. Only use written, detailed agreements reviewed by a specialist—protect yourself from unenforceable or excessive deductions.
If you want your CFA or DBA properly reviewed before signing, our team offers fixed-fee, pre-signing contract checks to ensure compliance and client protection.
Our Winning Approach to CFA vs DBA UK Litigation Funding
Our team combines sector-leading technical knowledge with practical, client-focused support throughout every stage of the claims process. Whether your dispute concerns contract law, construction, financial services, or professional negligence, we tailor funding recommendations for your goals, complexity, and commercial drivers.
Clients benefit from:
- Fixed-fee, plain-English CFA and DBA reviews
- Secure digital document transfer via our Go Transfer portal
- Dedicated WhatsApp lawyer access for fast case updates
- Clear, tailored recommendations on the right funding model for your risk appetite
- SRA-regulated contracts designed for fairness and enforceability
- Proactive eligibility and funding structure advice at every stage
If you’re considering a no win no fee funding structure for a commercial or partnership dispute, book a confidential, fixed-fee assessment and side-by-side funding comparison with our expert lawyers.
Frequently Asked Questions
Can I use a DBA for my employment claim?
You can only use a DBA in specific employment tribunal cases and only with strict caps. Not all law firms will offer them for employment disputes.
Are there any risks if I choose a no win no fee agreement?
There are risks, including paying the other party’s costs if you lose (if not insured), loss of success fees or DBA deductions, and invalid or unfair terms. Always review written agreements carefully with an expert.
Do I have to pay any costs if I lose my case with a no win no fee solicitor?
Even “no win no fee” does not cover court fees, expert costs, or the other side’s legal costs unless you have ATE or similar insurance in place.
Is my solicitor’s success fee always capped under a CFA or DBA?
CFA success fees are capped in personal injury and similar claims, but can be higher for commercial disputes. DBA percentages are strictly capped at 50% for most commercial cases.
How do court deadlines affect my no win no fee agreement?
Time limits under the Limitation Act 1980 apply to all cases. If you miss a deadline, your funding agreement cannot revive the claim.
What happens if the other side settles before trial?
Both CFAs and DBAs usually apply deductions to settlements based on terms in your agreement. Get these terms in writing before signing.
Will a no win no fee agreement affect my chances of recovering damages?
Not directly, but your percentage or success fee reduces the net amount you keep. Ask for precise calculations before you commit.
Can all law firms offer no win no fee options for commercial claims?
No. Only SRA-authorised firms meeting compliance rules can provide CFA and DBA structures for commercial disputes.
How quickly can your lawyers set up a CFA or DBA for my case?
We routinely issue SRA-compliant agreements within 48 hours from first instruction and document review.
What should I watch for in the small print of a funding agreement?
Check definitions of “winning,” rules for early or interim settlement, disbursement liability, and whether insurance for opponent’s costs is included.
Get Specialist Advice on CFA vs DBA No Win No Fee Litigation Today
Properly choosing between Conditional Fee Agreements (CFAs) and Damages-Based Agreements (DBAs) can directly impact your financial outcome, risk profile, and route to resolution in English litigation. Your best chance of maximising your return and limiting uncertainty comes from understanding each model, knowing your eligibility, and moving fast to avoid limitation traps.
Our expert team provides clear, fixed-fee advice on all no win no fee models and offers strategic reviews for commercial, construction, property, and partnership cases. Get a funding strategy tailored to your goals and the protection you need from risk.
Call our team on 0207 459 4037 or use our online booking form to arrange a Free Consultation.
