The Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 (Success Fee Agreements) Regulations 2020

Terms of a success fee agreement

4.—(1) A success fee agreement must—

(a) include details of the matter, claim or proceedings, or parts thereof, to which the success fee agreement relates,

(b) specify the type of civil remedy which the recipient seeks,

(c) include a description of the work to be carried out by the provider,

(d) provide that in the event of a conflict with the provider’s standard terms of engagement, the terms of the success fee agreement take precedence,

(e) specify the basis on which the amount of any fee potentially payable under the success fee agreement is to be determined,

(f) oblige the provider to consult with the recipient on any significant development including, but not limited to, the receipt of an offer of settlement,

(g) specify whether or not the provider intends to retain any expenses which are awarded to the recipient in civil proceedings or which it is agreed with another person that the recipient is entitled to recover(1),

(h) explain how to access the relevant procedure for dealing with complaints about the provider or providers,

(i) set out the circumstances in which the provider may, as a consequence of the recipient’s conduct, terminate the agreement prior to the resolution of the matter to which it relates and require payment from the recipient for services provided prior to termination,

(j) provide that where the recipient terminates the success fee agreement prior to the resolution of the matter to which it relates, the recipient will normally be liable to pay for services provided prior to termination, and

(k) provide details of the fee which would be charged by the provider and any other sums which would be payable by the recipient to the provider, in the event that the provider or recipient terminates the agreement prior to the resolution of the matter to which it relates.

(2) If the success fee agreement provides that any fee potentially payable may be subject to change without further agreement, such as in the case of periodic increases to hourly rates charged by the provider, the success fee agreement must provide that changes will be notified to the recipient in writing as soon as reasonably practicable.

(3) In a matter that is, or could become, a claim for damages for personal injuries or the death of a person from personal injuries, the success fee agreement must provide that the provider is liable to pay where—

(a) a court makes an award of expenses in consequence of proceedings being conducted in the manner described in section 8(4)(a), (b) or (c) of the 2018 Act, and

(b) the court indicates that the conduct concerned was that of the provider and not the recipient.

(1)

Section 3 (expenses in the event of success) of the 2018 Act makes provision for the provider’s entitlement to recover expenses, in addition to the success fee.