Standard basis

Standard basis is a term of art in English civil procedure that, unlike so many other terms of that art (without prejudice, indemnity basis for example) has not found its way into the weave of English contract law precisely because it states the bleeding obvious, and contract law provides for it already.

Determination of costs on the "standard basis" means any costs will only be awarded if they are proportionate, even if (otherwise) they would have been reasonable. Strictly speaking this is litigation chat, but don’t be surprised to see trustees and custodians jamming it in to their security deeds.

Where the amount of costs is to be assessed on the standard basis, the court will –

(a) only allow costs which are proportionate to the matters in issue. Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred; and

(b) resolve any doubt which it may have as to whether costs were reasonably and proportionately incurred or were reasonable and proportionate in amount in favour of the paying party.

Factors which the court may take into account are set out in rule 44.4.).

Instead, grasping lawyers will try to foist upon you: the indemnity basis of cost determination. Do not allow it.

Rule 44.3 of the Rules of Civil Procedure