What is a Conditional Fee Agreement?

CNPupdate

 

What is a Conditional Fee Agreement?


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Date Published: 8 April 2022 


Authors: Venetia Tan and Lim Shu Yi




Conditional Fee Agreement (CFA) – what’s this?

A conditional fee agreement allows the client to agree with their Singapore lawyer that their lawyer’s fees shall be payable only upon certain milestones. It could also mean that the client enjoys a discounted rate until the client successfully recovers their claim amount.

In other words, if the client has aged receivables and is experiencing cash flow issues, they may soon be able to engage lawyers and proceed with their claim whilst on a limited budget, and pay more when they have more.

Conditional Fee Agreement (CFA) – when can I have one?

These can only take place after the Minister issues notice of commencement in the government gazette.

They are also limited to three types of proceedings:

  1. arbitration proceedings;
  2. certain Singapore International Commercial Court (SICC) proceedings;
  3. related court and mediation of arbitration / SICC proceedings.

Disclaimer: This update is provided to you for general information and should not be relied upon as legal advice. The editor and the contributing authors do not guarantee the accuracy of the contents and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the contents.


Our Team

Venetia2018

Partner

    Venetia is a disputes lawyer with experience handling international arbitration, litigation and advisory work on international and local commercial disputes, in particular, disputes relating to foreign investments and joint ventures, financing, distributorships, and jurisdictional challenges. Venetia was listed as Singapore’s 20 most influential lawyers aged 40 and under in 2018 by the Singapore Business Review, and is also recognised as one of Asia’s Super 50 Dispute Lawyers by the Asian Legal Business in 2021.

    Lim Shu-yi-edited010618

      Senior Associate
      Shu-Yi is an Associate in the Dispute Resolution team. Her practice experience includes a range of dispute resolution and advisory work, including: contractual disputes, debt recovery, employment, and insolvency, with a focus on cross-border and domestic commercial disputes.


      We have a particular passion and interest in blockchain technology applications, cryptocurrencies and ICOs. We currently advise issuers of tokens, ICO advisors, venture capital firms and entrepreneurs involved in this space on Singapore legal issues and regulatory compliance for a range of planned business activities, ranging from utilization of blockchain to enable business applications in diverse fields (including money remittance, solar energy, consumer rewards, structured social interaction; music and entertainment industry; holiday & leisure industry; employment marketplace, consumer rewards, crypto-asset security applications); to setting up cryptocurrency exchanges and issue of tokens on proprietary platforms.





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