Under what conditions are indemnity costs assessed?

Indemnity costs are typically assessed based on considerations such as the complexity and importance of the case, rather than a fixed formula or standard rates. This approach acknowledges that certain cases may require more resources, involve more significant legal issues, or demand a higher level of expertise, all of which can impact the overall cost of legal representation. Consequently, when a court decides to award indemnity costs, it is usually reflecting the need to compensate for these heightened requirements, ensuring that the successful party is adequately reimbursed for reasonable legal expenses incurred.

By focusing on the complexity and importance of the case, the assessment of indemnity costs can be tailored to the specific circumstances surrounding the legal proceedings. This flexibility allows for a more nuanced approach to cost recovery, as opposed to applying a rigid formula or a standard rate that may not accurately represent the nature of the legal challenges faced.