{"id":632,"date":"2018-03-07T09:27:02","date_gmt":"2018-03-07T09:27:02","guid":{"rendered":""},"modified":"2020-06-01T10:59:15","modified_gmt":"2020-06-01T10:59:15","slug":"award-costs2","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/law-help\/lpc\/award-costs2.php","title":{"rendered":"Award of Costs (Part 2) | LPC Help"},"content":{"rendered":"<p><strong>4.2 Award of Costs (2)<\/strong><\/p>\n<p>In determining the amount that the winning party is entitled to, the Courts will also take into account the <strong>indemnity principle<\/strong>, under which, the winning party will be prevented from recovering more than he has actually paid to his solicitor during the litigation.<\/p>\n<p>The courts assess costs on both the standard and indemnity basis. Regardless of the method used &#8211; either standard or indemnity, the underlying principle remains that the winner cannot recover more than he has actually incurred in terms of costs.<\/p>\n<h2>The Standard Basis<\/h2>\n<p>This is the usual formula used to assess costs. Under CPR 44.4(2), only proportionate costs can be recovered. Should there be a question over proportionality, the Courts will rule in favour of the party who is paying the costs &#8211; i.e. usually the loser.<\/p>\n<h2>The Indemnity Basis<\/h2>\n<p>Usually, costs are only awarded on this basis if one of the parties has behaved unreasonably, for example in rejecting a Part 36 offer, being dishonest, ignoring courts orders or continuing with litigation despite the fact that the claim is clearly unjustified. If costs are assessed on this basis, any doubt as to reasonableness in relation to costs will be resolved in favour of the party who is being paid &#8211; i.e. usually the winner.<\/p>\n<div class=\"jumbrotron\">\n<p>Indemnity costs differ from the indemnity principle. The <strong>indemnity principle<\/strong> is an idea or an assumption &#8211; i.e. that a winner cannot recover more costs than he has incurred. <strong>Indemnity costs<\/strong> meanwhile are simply a basis or formula for calculating the actual costs..<\/p>\n<\/div>\n<h3>Also in this section:<\/h3>\n<div class=\"list-group mb-3\">\n<p>    <a class=\"list-group-item d-flex justify-content-between align-items-center\" href=\"costs-menu.php\">4. Costs <i class=\"fa fa-angle-right\"><\/i><\/a><\/p>\n<p>    <a class=\"list-group-item d-flex justify-content-between align-items-center\" href=\"award-costs1.php\">4.1 Award of Costs (1) <i class=\"fa fa-angle-right\"><\/i><\/a><\/p>\n<p>    <a class=\"list-group-item d-flex justify-content-between align-items-center\" href=\"costs-orders.php\">4.3 Costs Orders <i class=\"fa fa-angle-right\"><\/i><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>LPC guide to award of costs in civil litigation. Standard and Indemnity basis of costs awards in our legal Practice Course revision on how costs are awarded in a civil case.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[66],"tags":[85],"class_list":["post-632","post","type-post","status-publish","format-standard","hentry","category-law-helplpc","tag-uk-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Award of Costs (Part 2) | LPC Help | LawTeacher.net<\/title>\n<meta name=\"description\" content=\"LPC guide to award of costs in civil litigation. Standard and Indemnity basis of costs awards in our legal Practice Course revision on how costs are awarded in a civil case.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lawteacher.net\/law-help\/lpc\/award-costs2.php\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Award of Costs (Part 2) | LPC Help\" \/>\n<meta property=\"og:description\" content=\"LPC guide to award of costs in civil litigation. 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