Indemnity basis

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Indemnity basis is a term of art in English civil procedure that, like so many other terms of that art (without prejudice, for example) has seeped illegitimately into the fabric of English contract law through the husbandry of over-zealous lawyers.

Derermination of costs on the "indemnity basis" means any doubt or disagreement as to the reasonableness of costs is the be awarded in favour of the recipient of the costs award. Strictly speaking this is litigation chat, but don’t be surprised to see trustees and custodians jamming it in to their security deeds.

Resist.

There is an alternative: the tandard basis. Prefer that.


Rule 44.3 of the Rules of Civil Procedure