Can you be liable under an indemnity for sums that have not yet been paid out?

In the recent case of Durley House Ltd v Firmdale Hotels Plc [2014] EWHC 2608 (Ch), the High Court considered whether the defendant indemnifier was liable under a contract of indemnity, when the claimant indemnified party had not yet paid out the sums owed to the creditor.

Facts

The Claimant tenant entered into a lease for a property under which it had to pay rent to the Lessor. The Claimant separately entered into a management agreement with the Defendant, which required the Defendant to pay the rent due under the lease directly to the Lessor and also to indemnify the Claimant against all liability, damage or loss resulting from the Defendant's breach of the management agreement.

The Defendant breached the management agreement by failing to pay the rent due under the lease to the Landlord. Since the Lessor did not have a contractual relationship with the Defendant, the Lessor brought proceedings against the Claimant, who subsequently brought an action...