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To fund a breach of contract claim a claimant enters into a damages-based agreement with a firm of solicitors set at 20%. The claimant’s solicitors pay disbursements of £5,000. The action is settled. A settlement order is drawn up under which the defendant agrees to pay the claimant damages in the sum of £150,000 and agrees to pay the claimant’s solicitors’ costs of £10,000 plus disbursements of £5,000. The defendant pays the amounts due to the claimant’s solicitors.
The claimant’s solicitors calculate the amount they can deduct under the damages-based agreement. The solicitors will remit the balance to the claimant.
What sum will the claimant receive from his solicitors?
A. £130,000
B. £120,000
C. £115,000
D. £148,000
E. £117,000
A - £130,000
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Find out what happens after passing the SQE and admission to the roll of solicitors.