Success Fee Arrangements in Scotland

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Success Fee Arrangements in Scotland

Published 20 febrero 2020

The Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 introduces fundamental changes to the funding and costs regime in Scotland. One of the most significant changes is the ability for solicitors to enter into damages based agreements with claimants in personal injury actions. Regulations in respect of the operation of such agreements, to be known as Success Fee Arrangements (SFAs), have now been published.  As expected, the regulations propose to cap SFAs as follows:

(a) in respect of the first £100,000 of the financial benefit, 20%,

(b) in respect of the amount of the financial benefit over £100,000 but not exceeding £500,000, 10%,

(c) in respect of the amount of the financial benefit over £500,000, 2.5%.

What next?  

The regulations will now be considered by the Scottish Parliament’s Justice Committee who will publish its report on 29th March 2020.  If approved, the regulations will come into force on  27th April 2020.

For more information or advice, please contact one of our experts in our Scotland team.

Authors

Casey Thompson

Casey Thompson

Glasgow

+44 (0)141 223 8702

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