Article by Syed Zafar Ali Shah Advocate High Court Islamabad
/ Young leader from Gilgit Doing Public Interest Advocacy
In the United Kingdom, the rise of Damages-Based Agreements
(DBAs), often referred to as “no win, no fee” arrangements, has reshaped the
way legal fees are paid and has significantly expanded access to justice. Under
this model, solicitors are remunerated by taking a percentage of the damages
awarded to the client rather than charging upfront fees. For personal injury claims,
this percentage is capped at 25%, while in employment disputes it may reach
35%, and in other civil litigation up to 50%. This framework, regulated by the
Damages-Based Agreements Regulations 2013, has become a cornerstone of
litigation funding, particularly in personal injury cases and collective
redress actions. By shifting the financial risk from claimants to lawyers, DBAs
have opened the doors of justice to individuals and groups who might otherwise
be deterred by prohibitive costs.
The implications of this model are profound. Citizens who
lack the means to pay for legal representation upfront are no longer excluded
from pursuing legitimate claims. Communities harmed by corporate negligence or
environmental damage can pool their grievances under a DBA structure, enabling
collective redress against powerful institutions. Lawyers, too, are
incentivized to pursue meritorious cases with diligence and strategic focus,
since their remuneration depends entirely on success. This alignment of interests
between client and solicitor has created a more dynamic and accessible
litigation landscape in the UK, one that balances risk and reward in a way that
empowers ordinary people.
For Pakistan, where high litigation costs often discourage
ordinary citizens from pursuing claims, the UK’s experience offers valuable
lessons. Access to justice remains uneven, with marginalized groups struggling
to afford representation and collective redress mechanisms underdeveloped.
Introducing a regulated DBA framework could help bridge these gaps. By allowing
lawyers to share in the risk and reward of litigation, Pakistan could empower
claimants while ensuring accountability in sectors ranging from consumer
protection to environmental justice. Such a reform would not only democratize
access to justice but also strengthen the credibility of the legal system by
making it more responsive to public needs.
Of course, challenges would need to be anticipated and
addressed. Clear regulatory safeguards would be essential to prevent
exploitation, with caps similar to the UK’s 25% limit in personal injury cases
ensuring fairness. Professional ethics would need to be reinforced so that
lawyers balance commercial incentives with their duty to clients. Judicial
oversight would also be critical, with courts monitoring the fairness of
contingency arrangements and ensuring that vulnerable claimants are not
disadvantaged. These safeguards would help build trust in the system and ensure
that DBAs serve their intended purpose of expanding access to justice rather
than creating new inequities.
The time is ripe for Pakistan’s legal community to debate
whether DBAs should be embraced as a tool for equity and accountability. The
UK’s model demonstrates that such agreements can be successfully regulated and
can deliver tangible benefits for claimants and society at large. For Pakistani
lawyers and policymakers, adapting this model to local conditions could
democratize access to justice, strengthen collective redress, and align
Pakistan’s legal system with global trends in litigation funding. If carefully
implemented, DBAs could become a powerful instrument of reform, ensuring that
justice is not reserved for the wealthy but is accessible to all who seek it.
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