Funding with DBAs

Harbour funds law firms on a full or partial basis when they are instructed on a Damages Based Agreement (DBA).

Law firms can benefit from funding when instructed by their clients via a damages based agreement (a DBA). Working closely with leading costs QCs, Harbour has developed and deployed a bespoke product which allows law firms to work with their clients via a DBA whilst offsetting unbilled WIP and disbursements via a separate agreement with Harbour.

  • The law firm enters into a DBA with its client under which all legal fees and disbursements are borne by the law firm itself with no recourse to the client. In the event of success, the law firm is entitled to up to 50% of proceeds.
  • The law firm then enters into a separate agreement with Harbour to share the costs of the legal fees and disbursements for which the law firm is liable in return for a proportionate share of their entitlement to proceeds under the DBA made with the client.

Typically, Harbour pays all disbursements and a proportion of the law firm’s WIP. On success, the proceeds are divided between the law firm and Harbour in proportion to the respective financial contributions made (costs paid by Harbour and WIP foregone by the law firm).

Typically, Harbour pays all disbursements and a proportion of the law firm’s WIP reducing the burden on the law firm’s cash flow
Law firms are able to offer alternative fee structures to their clients without over-committing their own capital and can grow their “at-risk” portfolio faster than would otherwise be possible
Access is given to a professional investor’s expertise in risk assessment and portfolio management
On success, the proceeds are divided between the law firm and Harbour in proportion to the respective financial contributions made (costs paid by Harbour and WIP foregone by the law firm) enabling the law firm to retain a share of the upside from success.