Which of the following statements about damages-based agreements is true?

• A. The solicitor’s fee is a fixed amount regardless of outcome
• B. The solicitor is paid only if the client wins a verdict
• C. The agreement guarantees a minimum fee
• D. The solicitor’s fees are tied to success, with no fees if the case is lost

Answer: (D)

Damages-based agreements are a contingency-style funding arrangement: the solicitor’s fees depend on the outcome, coming from a share of any damages recovered. The crucial point is that if the claim is lost, there are no solicitor fees for the client. If the claim succeeds, the solicitor’s fee is paid out of the damages recovered, not as an upfront or hourly charge. This is why the statement that fees are tied to success with no fees if the case is lost is the accurate description. The other options don’t fit that structure: a fixed fee regardless of outcome isn’t contingent; paying only if you win a verdict is too narrow (DBAs can apply to settlements as well); and a guaranteed minimum fee contradicts the no-fee-if-lost principle.