What is the general rule regarding the award of costs in legal proceedings?

In legal proceedings, the general rule is that costs are awarded on the ordinary basis. This means that the losing party in a civil case is typically required to pay the costs incurred by the winning party, but not necessarily all of them. On the ordinary basis, the costs awarded will usually be assessed in accordance with what is considered reasonable and necessary for the litigation.

This approach aims to balance the interests of both parties by discouraging frivolous litigation while not excessively punishing the losing party. It also reflects the principle that parties should bear their own costs to some extent in civil proceedings to promote access to justice.

The other options suggest different frameworks for cost awards. For instance, a fixed basis limits the amount recoverable, which is less commonly applied. The indemnity basis can result in the losing party paying all reasonable costs of the winning party, but this is typically reserved for exceptional circumstances where it is deemed just to do so. Lastly, while statutory guidelines do influence the awarding of costs, they do not solely dictate them; they serve more as a framework within which the court exercises discretion in making decisions about costs.