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Payment of costs by a third party does not breach the indemnity principle

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Published on: 22 June 2011

Published by a LexisNexis Dispute Resolution expert

Table of contents

Court Details
Facts
Judgment
The Indemnity Principle
Comment

Article summary

Where a litigant enters into an agreement with a third party that the latter will fund the costs of the proceedings, the litigant is still deemed liable to pay its costs for the purposes of the indemnity principle (whereby a successful party is indemnified for its costs incurred in the litigation). The only means by which the indemnity principle is breached in this scenario is in the event of an express bargain with the third party that the litigant will in no circumstances ever be liable to pay costs. (Culkin v The Wirral Independent Appeals Panel)

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