Surprisingly, the client accepted that if the DBA were not applicable, it would nevertheless be liable, on a quantum-meruit basis, for reasonable royalties on a reduced-time basis for the same period. Wasn`t the sum of $125,123.14 the amount claimed as reasonable fees on an hourly basis? Moreover, if the DBA had not been applicable, the client would not have owed the lawyers anything and the lawyers might not have been entitled to an amount equivalent to quantenmeruit. Although this seems to be a difficult result, it is certainly the position in which a conditional agreement (CFA) is not applicable (see Awwad/Geraghty – Co). The client announced the DBA after 13 months and the lawyers sent him an invoice of $125,123.14 based on a time base for that period. It argued, in part of its appeal, that the DBA was not applicable under section 58AA (2) of the Legal Services and Services Act 1990, on the grounds that it could “expect a payment above a prescribed amount or a payment above a prescribed amount.” It was possible that the amount should have been less than US$125,123.14 if the DBA application had been successfully followed. If it had not been successful, there would obviously have been no other amount to be paid than expenses. The master ordered a preliminary question as to the inapplicableness of the DBA to be considered. In addition, the recovered costs must be credited to the client, which means, in a critical dispute, that the client pays nothing because of the combination of the cap, the principle of compensation and solvency. On the other hand, the risk-based success fees in the CFAs are non-refundable, so there is never anything that can be compensated. The client receives $100,000 in damages because the principle of compensation limits the refundable costs to $50,000, and that is all the lawyer can ask for, and since the total amount is recovered from the other side, the client pays nothing at all. For example, the lawyer receives $50,000 instead of $75,000, while the lawyer has taken all the risk. The client, who did not take any risks with respect to his own lawyer`s legal fees, receives the full $100,000.