indemnity principle

indemnity principle
In the context of dispute resolution, a principle of law which provides that costs as between parties are given as an indemnity to the person entitled to them. They are not imposed as a punishment on the party who pays them, or given as a bonus to the party who receives them. The amount which the paying party has to pay cannot exceed the amount which the successful party has to pay to his own solicitor.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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