Letter Explaining DBA—General Litigation or Advocacy
Drafting notes
UAE law prohibits contingency or success fee arrangements between lawyers and clients (although this prohibition does not apply to any agreement between a funded party and the funder). Damages based agreements are however permitted in the DIFC and ADGM.
Standard DBA (general litigation or advocacy)
We have discussed various options for funding your costs, such as:
legal expense insurance, eg under your house or car insurance
via a trade union or other membership organisation
by a third party funding agreement
by legal aid
[add any other method you may have discussed]
It appears that none of these options is available or suitable and we have therefore agreed to act on a damages-based agreement or ‘DBA'.
A DBA is a type of no-win-no-fee agreement. The agreement itself is enclosed with this letter and it relates to [state what the DBA covers, eg your claim for breach of contract against KMFFS limited]. We are satisfied that the DBA is suitable for your needs and takes account of your best interests.