What are indemnity fees?
What are indemnity fees?
A litigation court order for indemnity costs means the party that lost has been ordered to pay a higher costs contribution to the winner than is standard. Judges order indemnity costs to punish litigants that engage in poor litigation conduct.
What is the difference between partial indemnity and substantial indemnity?
A partial indemnity award for costs has been interpreted as ranging from 50%-75% of actual costs incurred by a party. Whereas, an award on a substantial indemnity basis is an amount that is 1.5 times what would have been awarded on a partial indemnity scale.
What is partial indemnity?
Costs are usually awarded either as ‘partial indemnity’ costs, or ‘substantial indemnity costs’. For partial indemnity costs, the paying party has to cover up to 60% of the costs incurred by the other party; for substantial indemnity costs, the paying party has to cover up to 90%.
When costs are awarded on a partial indemnity basis the successful party is obtaining reimbursement of approximately?
FEES:
| Task | Time on Partial Indemnity Basis |
|---|---|
| Preparation for and travel to and attendance at cross examination (JA) | 7.2 hrs |
| Review of responding materials, transcripts from cross-examinations, and preparation of factum (JS) | 12.2 hrs |
| Preparation of bill of costs (JA) | 1.0 hrs |
| Arguing of summary judgment motion (JS) | 4.0 hrs |
What is the difference between standard costs and indemnity costs?
Standard costs must be reasonable and necessary, and will be disallowed if they are not proportionate under CPR 44.3(5)(a)-(e). Indemnity costs, on the other hand, need only be reasonable. The reverse is true for indemnity costs. It is the receiving party in whose favour the point will be decided.
Whats an indemnity basis?
It generally means that the receiving party is likely to obtain an order for a higher percentage of their costs claim on assessment than would be the case if costs were assessed on the standard basis.
What is partial indemnity basis?
While partial indemnity costs amounts are not specifically defined, in most cases when a court awards costs on this basis it results in compensation of between half and two-thirds of the reasonable (to be determined by the court) costs of the other winning party.
What does full indemnity mean?
Indemnity is a comprehensive form of insurance compensation for damages or loss. When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages. In this arrangement, one party agrees to pay for potential losses or damages caused by another party.
What are the two types of costs that may be awarded by the court to the successful litigant?
A successful litigant in the Federal Court (be it plaintiff or defendant) is typically entitled to recover some of its legal costs from the unsuccessful party. A costs award has two components: (i) legal fees; and (ii) disbursements.
What are the 2 types categories of costs that can be awarded to the successful party?
These costs awards are called “solicitor-client costs” and “solicitor and own client costs”; both are meant to punish the losing party. “Solicitor-client costs” allow the winning party to collect all of the reasonable costs of the lawsuit paid at the lawyer’s hourly rate.
What is full indemnity basis mean?
Many commercial agreements contain clauses stating that one party is required to indemnify the other part for legal costs in the event of a breach of contract. A clause requiring payment of costs on a “full indemnity basis” such as that set out above appears to get around this limitation on full costs recovery.
