Subrogation rights and contributions to costs orders (ARAG plc v Jones and another)

Article summary

Dispute Resolution analysis: This matter concerned a claim for contribution in respect of a costs order obtained following a successful claim for unpaid rent arrears. The court was required to determine whether Ms Gibson was entitled to claim a contribution from Mr Jones in respect of a costs order for which they were jointly and severally liable. ARAG plc had indemnified Ms Jones for these costs and sought to claim a contribution from Mr Jones by way of subrogation. The court considered the application of section 1 of the Civil Liability (Contribution) Act 1978 (CL(C)A 1978) and concluded that the right to a contribution in respect of orders for costs were excluded from this Act. Consequently, the right to claim a contribution in respect of a costs order for which two or more parties are jointly and severally liable would instead fall under common law. Consequently, the correct limitation period for this claim was six years, as per...