indemnity basis

In the context of costs in dispute resolution, where, under Civil Procedure Rule 44.4(3), the amount of costs is to be assessed so that the court will resolve any doubt which it may have as to whether the costs were reasonably incurred or were reasonable in amount in favour of the receiving party. There is no requirement for the costs to be proportionate. This has the effect of putting the onus on the paying party to show that the costs claimed are unreasonable. This generally means that the receiving party is likely to obtain an order for a higher percentage of their costs on assessment than would be the case if costs were assessed on the standard basis.