Q&As

Can a discounted CFA be used where a client has legal expense insurance (LEI) so that the usual charge out rate applies if successful, but the LEI rate applies if not?

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Produced in partnership with Alex Bagnall of Total Legal Solutions
Published on: 16 May 2016
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What is a DCFA?

Most lawyers will be familiar with a ‘pure’ CFA, often referred to as a ‘no win, no fee’ agreement. When acting under a pure CFA, a legal representative will be paid only if a win (as defined in the CFA) occurs. If it does not, no payment will be made for the work done. See subtopic: CFAs and DBAs for further information.

A DCFA may be referred to as a ‘no win, lower fee’ agreement. DCFAs include an agreement that the client will pay the legal representative’s fees in full if the case is successful, but, if it is not, the legal representative will be paid a reduced fee.

The role of success fees

Success fees are intended to ensure that a solicitor’s book of CFA-funded litigation can be run at a nil net loss. In other words, the success fee

Alex Bagnall
Alex Bagnall

Total Legal Solutions

Alex has worked in legal costs since 2007 and qualified as a Costs Lawyer in 2014. He has served as the Technical Director of a large multi-site firm of costs draftsmen, was the Head of Commercial Litigation Costs at another national firm and was a Senior Associate at a firm of solicitors which specialised in costs litigation. He is currently the Technical Manager at Total Legal Solutions.

Alex's practice consists of complex, technical and high-value claims for costs. He appears regularly as an advocate in Courts throughout the country and has acted as an advocate in Supreme Court assessments on a number of occasions. His extensive experience includes conducting costs appeals in the Court of Appeal and the Supreme Court, costs of arbitration (including challenges to arbitrators' fees), costs disputes between solicitors and their clients and those between professional Trustees and Beneficiaries of Trusts.

Alex frequently delivers training to lawyers on costs issues and teaches a module in costs litigation as part of an SRA-regulated Professional Skills Course.

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United Kingdom
Key definition:
Discount definition
What does Discount mean?

The finance charge levied by a receivables financier calculated in a similar way to interest but deducted from the purchase price of receivables.

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