Triplerose Limited

It is undecided whether the indemnity principle – that a paying party cannot be ordered to pay a receiving party more in costs than the receiving party is itself liable to pay – applies in the F–tT. However, in RTM cases, section 88(2) of the Commonhold and Leasehold Reform Act 2002 (“the 2002 Act”) applies, so as to expressly limit a landlord’s recoverable costs. An over–zealous application of the indemnity principle is to be avoided by tribunals.