56Costs penalties where defendant disputes another defendant’s defence

#### 56 Costs penalties where defendant disputes another defendant’s defence 56 Costs penalties where defendant disputes another defendant’s defence > If the reply of a defendant (the innocent defendant) to a claim or cross-claim disputes liability on a ground that the innocent defendant’s reply provides evidence of, any other defendant who disputes that ground is liable to pay the innocent defendant’s costs, assessed on an indemnity basis, occasioned by the dispute if— > > > (a) subsequently that ground is established in the proceedings by the evidence provided in the reply or admitted for the purpose of the proceedings by the disputing defendant, and > > > (b) the Tribunal determines on that ground that the innocent defendant is not liable on the claim or cross-claim, and > > > (c) the Tribunal determines that the ground was the principal or only ground on which the innocent defendant disputed liability on the claim. > > Note. > > The costs penalty provided by this clause does not apply if the innocent defendant escapes liability on a ground not raised in the innocent defendant’s reply.