The indemnity principle in Adams v London Improved Motor Coach Builders Ltd does not require that a successful party have an outstanding liability to their solicitor at the time a costs order is made; it is the creation of a liability, not the existence of an ongoing undischarged liability, that gives rise to the entitlement to recover costs. A successful party whose legal fees have been paid by a third party (such as the State under a funding agreement for police officers) can still recover costs. In malicious prosecution, the onus is on the plaintiff to prove what evidence was available to the defendant when charges were laid; if the plaintiff cannot prove this, the plaintiff cannot establish absence of reasonable and probable cause. A finding that the defendant held a genuine and honest belief in the plaintiff's guilt is fatal to a finding of malice.
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