When the Court is awarding costs on the indemnity basis, there is no requirement for the costs to be proportionate. The onus is therefore on the paying party to show that the costs claimed are unreasonable. This normally results in a much higher recovery for the receiving party, say 85%-90%.
Costs will be awarded on an indemnity basis in certain circumstances, for example, if a party has failed to better a Part 36 offer and/ or their conduct has been particularly unreasonable.
We’re produced an article on indemntiy basis for more information.