A contractual indemnity for costs in a lease guarantee operates independently of the court's discretionary power to award costs under s 76 of the Supreme Court Act 1970 (NSW). A party may enforce a contractual indemnity for solicitor/client costs in separate proceedings notwithstanding that party/party costs orders have already been made in prior litigation. Such enforcement is not barred by res judicata, Anshun estoppel, or abuse of process where the contractual claim had not crystallised during the prior proceedings. An indemnity clause covering 'all costs and expenses' imports solicitor/client costs, not merely party/party costs.
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