Scope of costs covered by an indemnity

EURO ASIAN OIL v CREDIT SUISSE [2017]

An indemnity is an express obligation on one party to compensate the other contracting party for some defined loss or damage arising from a particular trigger event, by making a monetary payment to that other party. The scope of an indemnity is entirely dependent upon its precise wording as this case amply demonstrates.

Background:

In the absence of a contractual agreement as to how fees should be paid, where costs proceedings are initiated there are two bases on which a Court will decide how they should be paid - on either what is called a 'standard' basis or on an 'indemnity' basis:

Facts:

Decision:

Points to note:

back to archive