Mixed Contingency Fee Agreement Template for England and Wales

A Mixed Contingency Fee Agreement provides a hybrid approach to legal funding that combines traditional hourly billing with success-based fees. This arrangement allows you to share litigation risks with your solicitor while ensuring access to legal representation in complex commercial disputes and high-stakes litigation matters.

When do you need this document?

You need a Mixed Contingency Fee Agreement when pursuing commercial litigation where traditional hourly billing creates financial barriers but pure contingency arrangements are unsuitable. This is particularly relevant in complex intellectual property disputes, professional negligence claims, or multi-party commercial litigation where cases may extend over several years. The agreement is also essential when working with third-party funders or after-the-event insurers who require clear fee structures. You should consider this arrangement when you have a strong case but limited immediate resources to fund lengthy litigation, or when your solicitor recommends sharing the financial risk to align interests and incentivize successful outcomes.

Key legal considerations

The fee structure must clearly define both the hourly rate components and success fee percentages, with explicit caps on total recoverable amounts. Success criteria require precise definition to avoid disputes about when contingency fees become payable. The agreement must address how costs will be handled if the case is unsuccessful, including liability for opponent's costs and disbursements. Risk allocation clauses should specify which party bears responsibility for different types of litigation expenses. Third-party funding arrangements, if applicable, must be clearly integrated into the fee structure. The agreement should include termination provisions that address how fees are calculated if the arrangement ends before conclusion of the matter.

Legal requirements in England and Wales

Mixed Contingency Fee Agreements must comply with Section 58 of the Courts and Legal Services Act 1990 and the Damages-Based Agreements Regulations 2013. The success fee component cannot exceed 50% of damages in personal injury cases or 50% of damages excluding exemplary and aggravated damages in other civil proceedings. The agreement must satisfy the writing requirements and include prescribed information about the circumstances in which fees and expenses are payable. Solicitors must provide clear explanations of the fee arrangement and obtain informed consent from clients. The agreement must comply with Civil Procedure Rules regarding costs budgeting and case management. Professional conduct rules require solicitors to ensure the arrangement is in the client's best interests and provides reasonable access to justice. Regular disclosure obligations apply throughout the litigation process.