2 Amendments to the Conditional Fee Agreements Regulations 2000
1 The Conditional Fee Agreements Regulations 2000 are amended in accordance with this regulation.
S.I.2000/692 amended by S.I.2000/2988.
2 After regulation 3, insert—

“3A Requirements where the client’s liability is limited to sums recovered
1 This regulation applies to a conditional fee agreement under which, except in the circumstances set out in paragraph (5), the client is liable to pay his legal representative’s fees and expenses only to the extent that sums are recovered in respect of the relevant proceedings, whether by way of costs or otherwise.
2 In determining for the purposes of paragraph (1) the circumstances in which a client is liable to pay his legal representative’s fees and expenses, no account is to be taken of any obligation to pay costs in respect of the premium of a policy taken out to insure against the risk of incurring a liability in the relevant proceedings.
3 Regulations 2, 3 and 4 do not apply to a conditional fee agreement to which this regulation applies.
4 A conditional fee agreement to which this regulation applies must—
(a) specify—
(i) the particular proceedings or parts of them to which it relates (including whether it relates to any appeal, counterclaim or proceedings to enforce a judgment or order); and
(ii) the circumstances in which the legal representative’s fees and expenses, or part of them, are payable; and
(b) if it provides for a success fee—
(i) briefly specify the reasons for setting the percentage increase at the level stated in the agreement; and
(ii) provide that if, in court proceedings, the percentage increase becomes payable as a result of those proceedings and the legal representative or the client is ordered to disclose to the court or any other person the reasons for setting the percentage increase at the level stated in the agreement, he may do so.
5 A conditional fee agreement to which this regulation applies may specify that the client will be liable to pay the legal representative’s fees and expenses whether or not sums are recovered in respect of the relevant proceedings, if the client—
(a) fails to co-operate with the legal representative;
(b) fails to attend any medical or expert examination or court hearing which the legal representative reasonably requests him to attend;
(c) fails to give necessary instructions to the legal representative; or
(d) withdraws instructions from the legal representative.
6 Before a conditional fee agreement to which this regulation applies is made, the legal representative must inform the client as to the circumstances in which the client may be liable to pay the legal representative’s fees and expenses, and provide such further explanation, advice or other information as to those circumstances as the client may reasonably require.”

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3 In regulation 6(a), after “3”, insert “, 3A”.