Collective Conditional Fee Agreements

The Collective Conditional Fee Regulations enabling the bulk purchase and provision of legal services through collective conditional fee agreements came into effect on 30 November. In introducing the regulations the Lord Chancellor’s Department described the provisions for conditional fee agreements introduced in April as being ‘primarily designed for the High Street solicitor’ enabling individuals who were covered by insurance policies to recover the success fee and insurance premium from their losing opponents. The LCD describe collective CFAs as being designed specifically for mass providers and purchasers of legal services – such as trade unions, insurers or commercial organisations. A collective CFA will enable a trade union to enter into a single agreement with solicitors to govern the way in which cases for its members will be run and paid for. It is intended that simplification of the process will reduce the cost of pursuing individual cases. The scheme will also enable commercial organisations to enter into collective CFAs to pursue or defend claims arising in the course of business.