Litigation & Advisory
Legal Costs
Legal costs group certain trial expenses. Understand their difference from attorney fees and procedural indemnity.
Lexicon
Civil & Commercial Litigation
Procedural Indemnity
The procedural indemnity is a sum that the judge may award to contribute to certain costs incurred by a party and not included in the legal costs, when it would be inequitable to leave them entirely at their charge. It remains distinct from damages claimed for the litigation itself.
In a litigation budget, do not treat it as an automatic and full reimbursement of fees. Separate the amounts claimed on the merits, the legal costs, and this ancillary request. This distinction helps to understand the judgment and compare the result obtained with the actual expenses incurred.
This ancillary request must remain identifiable in the conclusions and in the decision. To assess the financial result of a trial, then compare the awarded sum with the actual expenses. A procedural indemnity is neither a lawyer's fee nor an automatic sanction of the losing party.
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