Indemnity costs orders—principles

Published by a LexisNexis Dispute Resolution expert
Practice notes

Indemnity costs orders—principles

Published by a LexisNexis Dispute Resolution expert

Practice notes
imgtext

This Practice Note considers orders for costs determined on an indemnity basis (indemnity costs orders). A court may order that costs are assessed on an indemnity basis so that any doubt as to the costs claimed are resolved in favour of the receiving party. Compare to a standard basis where any doubt is resolved in favour of the paying party, where costs are determined with any doubt as to whether the costs have been reasonably incurred or were reasonable in amount being resolved in favour of the receiving party (CPR 44.3(3)). It explains what this is and sets out the CPR guidance together with the approach the courts will take when exercising its wide discretion to indemnity costs and determining whether there are matters which take the case out of the norm (the critical requirement set out in the leading authority in the Court of Appeal decision in Excelsior Commercial & Industrial Holdings v Salisbury Hamer Aspden & Johnson), eg wide, disproportionate, premature or speculative claims, failure to engage with or be reasonable in settlement negotiations

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Costs definition
What does Costs mean?

Money ordered to be paid by one party to another in respect of the costs incurred in the course of litigation, in bringing or defending a claim.

Popular documents