The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:
This Practice Note explains the indemnity principle as applied when seeking to recover costs in proceedings. The principle sets out the extent of a successful party’s entitlement to recover their costs.
Note that the indemnity principle is different to the indemnity basis used when undertaking a costs assessment. The indemnity basis is explained in Practice Note: Indemnity costs orders—principles.
When seeking to recover costs incurred in proceedings, it is generally the case that the amount of recoverable costs is less than the costs that have actually been incurred. This is invariably due to the application of rules on costs recovery and the requirement for costs to be proportionate. For guidance, see Practice Notes: Costs assessment—general principles and Costs and proportionality.
While the extent of costs recovery can at times be uncertain, there is a clear rule that a client cannot recover costs that exceed the amount it is due to pay to its own solicitor. This is known as the indemnity principle.
The indemnity principle was established by the decision of the Court of Exchequer in 1860 in Harold v Smith, where it was held that:
‘Costs as between party and party are given by the law as an indemnity to the person entitled to them: they are not imposed as a punishment on the party who pays them, nor given as a bonus to
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Fraud by false representationFraud by false representation applies to a broader range of conduct than the offences under the preceding legislation (the Theft Act 1968 (TA 1968)). No gain or loss need actually be made, and no deception need operate on the mind of the deceived for the Fraud Act 2006
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Produced with input from Rebecca Cousin of Slaughter and May on market practice.This Practice Note summarises the rules and guidance in relation to parties who are, or may be presumed to be, acting in concert for the purposes of The City Code on Takeovers and Mergers (the Code). In particular the
Case number [insert number][In the principal registryORIn the [insert court location] FAMILY court]Sitting at [insert place]Notice of actingBetween[insert petitioner name]Petitionerand[insert respondent name]RespondentTake notice that we [insert name of firm] have been appointed to act as the
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