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New model conditional fee agreement

Last updated: 26 June 2014

New rules on conditional fee agreements (CFAs) came into force on 1 April 2013. Clients who enter into a CFA on or after 1 April will have to pay the success fee and any after-the-event (ATE) premium from their damages.

These changes have been brought about by sections 44 and 46 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and the Conditional Fee Agreements Order 2013.

Update: On 13 June 2014 the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force. The regulations will apply to retainers, including CFAs, entered into on or after that date and impose a new statutory regulatory regime for certain consumer contracts.

Clients must now be advised that they have 14 days to exercise their right to cancel the agreement in certain circumstances.

We have published a revised model CFA and interim advice for use in personal injury and clinical negligence claims.

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