PART 1SUCCESS FEE AGREEMENTS

I11Success fee agreements

1

In this Part, a “success fee agreement” is an agreement between a person providing relevant services (the “provider”) and the recipient of those services (the “recipient”) under which the recipient—

a

is to make a payment (the “success fee”) to the provider in respect of the services if the recipient obtains a financial benefit in connection with a matter in relation to which the services are provided, but

b

is not to make any payment, or is to make a payment of a lower amount than the success fee, in respect of the services if no such benefit is obtained.

2

In this section—

  • “claims management services” means services consisting of the provision of advice or services, other than legal services, in connection with the making of a claim for damages or other financial benefit, including—

    1. a

      advice or services in relation to—

      1. i

        legal representation,

      2. ii

        the payment or funding of costs associated with making the claim,

    2. b

      referring or introducing one person to another,

    3. c

      making inquiries,

  • “legal services” means services consisting of the provision of legal advice, assistance or representation,

  • “payment” includes a transfer of assets and any other transfer of money's worth,

  • “relevant services” means legal services or claims management services provided in connection with a matter—

    1. a

      which is the subject of civil proceedings to which the recipient is a party before a Scottish court or tribunal, or

    2. b

      in relation to which such proceedings are in contemplation,

  • “Scottish court or tribunal” means a court or tribunal established under the law of Scotland.

3

In this Part, the following terms, in relation to a success fee agreement, are to be construed in accordance with this section—

  • “payment”,

  • “provider”,

  • “recipient”,

  • “relevant services”,

  • “success fee”.