A litigation funder that invests in proceedings as a speculation, has contractual powers to control the conduct of the litigation, and is in possession of all relevant facts may be ordered to pay indemnity costs where the funded proceedings involve serious allegations made without evidentiary basis and the funder is put on notice of the deficiencies. The existence of an indemnity from the funder to the funded party does not preclude a direct costs order against the funder. UCPR r 361 does not apply where the plaintiff obtains no judgment at all, but this does not prevent indemnity costs being ordered on other grounds.
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