Litigation Letter
Lawyer liability for adverse costs
A third-party funder is liable for adverse costs under the decision in Arkin v Borchard Lines [2005] EWCA Civ 655. Where a
lawyer is retained under a conditional fee agreement, the Court of Appeal in Hodgson v Imperial Tobacco Ltd [1998] EWCA Civ
224 stated that the lawyer was in no different position in respect of liability for adverse costs than one acting under a
conventional retainer. What is unclear therefore is whether a lawyer acting under a DBA has an Arkin liability of a Hodgson
protection.