What type of costs can an applicant seek if a Calderbank offer is unreasonably rejected?

When an applicant issues a Calderbank offer, which is a type of settlement offer made to encourage the opposing party to resolve the dispute before going to trial, and that offer is unreasonably rejected, the applicant can seek indemnity basis costs. This type of cost assessment allows a party to recover a higher amount of their legal costs than they would be able to under the ordinary basis.

Indemnity basis costs are typically awarded in situations where a party has acted unreasonably, such as by rejecting a reasonable settlement offer like a Calderbank offer. By seeking costs on this basis, the applicant may recover the full costs of their legal fees, rather than being limited to what the court considers reasonable under standard circumstances. This serves to penalize the opposing party for not accepting an offer that could have led to a resolution and thereby saving both parties the expense and time of further litigation.

In contrast, ordinary basis costs are calculated based on what the court considers reasonable for the work done. Fixed costs pertain to specific schedules of costs set out in legislation, generally applicable to certain types of cases or hearings, and do not reflect the actual legal expenses incurred by a party. Statutory costs specifically relate to costs defined by a statute, which may not apply