ABSTRACT
This chapter considers the circumstances in which losses consisting of a liability to pay damages to a third party or costs of third party proceedings may be recovered. Conceptually and procedurally the easiest category of cases are claims under a chain of back-to-back contracts that are dealt with by third party proceedings under Part 20 of the Civil Procedure Rules in the High Court in England or Wales. It is well established that a now claimant can claim damages from a now defendant in respect of damages awarded in previous proceedings to which the now defendant was not a party. Construction contracts very frequently contain indemnity clauses that enable one party to recover from the other party damages incurred at the suit of a third party or costs incurred in connection with such a claim. Any properly drafted contract contains an indemnity against liability for injury to persons or property.
