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Flout the Rules and Find Out: The Unforgiving Nature of the DBA Regime - Georgina Pressdee, Temple Garden Chambers

19/12/25. On 10 September 2025, Mr Justice Dexter Dias handed down his judgment in Reeves v Frain and McKinnon [2025] EWHC 2311 (KB), concerning the regulation of damage-based agreements (DBAs).

The Issues

There were two issues in the appeal:

  1. Whether, under Section 58AA of the Courts and Legal Services Act 1990 (the Act) and the Damages-Based Agreements Regulations 2013 (SI 2013/609) (the Regulations), payment is only permitted out of sums recovered from another party.
  2. Whether Counsel’s fees can be charged as expenses.

Background

The underlying Claim was a probate dispute as to which of two wills was valid, with the later will favouring the Respondent (R) heavily at the expense of the two Applicants (As). The trial Judge upheld the validity of the earlier will and made an order granting probate, with R to pay 70% of As costs on an indemnity basis. However, at the costs hearing the DBAs agreed between As and their respective solicitors were found to be unenforceable. Both purported to renumerate the legal representatives by granting them specified percentages of “any money and non-monetary award or settlement received”.

Ruling

Issue 1

Dias J considered how key terms were defined in the Act and Regulations and concluded that the latter...

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