Under damages-based agreements, what is the typical cap for personal injury cases as a percentage of damages?

• A. 10%
• B. 25%
• C. 35%
• D. 50%

Answer: (B)

Damages-based agreements set a contingency fee for the solicitor as a share of the damages recovered if the claim succeeds. In personal injury cases, that success fee is capped to protect the claimant, ensuring most of the award stays with them. The standard cap is 25% of the damages recovered, a limit established by the Damages-Based Agreements Regulations 2013. This cap applies to the success fee portion of the lawyer’s charges (not the base costs of the case), balancing the solicitor’s incentive to take on cases with the claimant’s protection. While other types of claims may have different funding rules, for personal injury the typical cap is 25%.