According to Rule 42.8, what type of costs are incurred when unnecessarily putting a party to proof?

The assertion that indemnity costs are incurred when unnecessarily putting a party to proof aligns with the intention of Rule 42.8 in the context of civil procedure in New South Wales. This rule is designed to discourage parties from engaging in conduct that unnecessarily prolongs proceedings or forces the opposing party to provide evidence on issues that could have been resolved expediently.

Indemnity costs are a type of legal cost order that goes beyond ordinary costs and typically reflects that one party has acted unreasonably or in bad faith. When a party unnecessarily compels another to prove a point in litigation—rather than agreeing to matters which should have been established without dispute—this is seen as an improper tactic. Such behavior not only extends legal proceedings but incurs additional costs for the opposing party, warranting a more substantial cost recovery under the principle of indemnity.

This principle is intended to encourage cooperation and efficiency in the litigation process, ensuring that parties act responsibly and do not engage in unnecessary disputes over clear or agreed matters. Indemnity costs can effectively penalize the party that compounded the litigation burden, reflecting the seriousness of unnecessarily putting a party to proof.