i-law

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.

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