Rust Consulting Ltd v PB Ltd (decision of Edwards-Stuart J)
Citation: EWHC 1622 (TCC);  PNLR 33;  All ER(D) 201 (Jun); in the Court of Appeal:  EWCA Civ 1070;  BLR 427; (2012) 144 Con LR 63
Nature of case:
The issue for the court’s consideration was whether PB Ltd (the Defendant- indemnifier) could challenge Rust Consulting Ltd’s(the Claimant) liability to make a payment under the indemnity agreement, either with regards to liability itself or with regards to the amount paid under settlement. The court held that in order for an indemnifier to be precluded from challenging the correctness of a judgement against the person indemnified or the amount of settlement, it had to be shown that the indemnifier was given notice of the proceedings; that he had then known of his liability to indemnify; and that the person to be indemnified had in some way relied on the belief that he would be made good in respect of the judgement or settlement.