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KembaraXtra – Legal Terms – Indemnity Basis
The indemnity basis is a method used by courts to assess legal costs payable by one party to another. Under this basis, the receiving party is entitled to recover all costs incurred except those that are unreasonable in amount or were unreasonably incurred.
This basis of assessment is more generous than the standard basis because any doubt as to reasonableness is resolved in favour of the receiving party. It is often applied where the conduct of the paying party justifies a more punitive approach to costs.
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