The applicants were auditors to the company, and, having successfully defended a claim by the company, sought their costs on an indemnity basis, rather than on the standard basis as awarded.
Held: The auditors, as also for directors, were given a right under Table A to an indemnity, and that indemnity was not displaced by an otherwise comprehensive terms of appointment letter. Even though they might have the right to commence a second action to recover the difference between the costs award and their rights under the appointment, a court should be reluctant, in costs proceedings, to make an award on this basis. Even though the company may have no effective defence to a second claim, the costs in the case before the court should be on the standard basis.
Judges:
The Hon Mr Justice Ferris
Citations:
Times 22-Aug-2001, Gazette 06-Sep-2001, [2001] EWHC Ch 391, [2002] EWCA Civ 899
Links:
Statutes:
Companies (Tables A to F) Regulations 1985 (1985 No 805)
Jurisdiction:
England and Wales
Company, Costs
Updated: 04 June 2022; Ref: scu.159956