Indemnity basis for costs applies when there are conduct issues and no Part 36 offer.

• A. Detailed assessment on a standard basis.
• B. Indemnity basis applies when there are conduct issues and no Part 36.
• C. The costs are assessed as a fixed rate.
• D. There is no assessment in such cases.

Answer: (B)

Indemnity costs come into play as a sanction for unreasonable or improper conduct in civil proceedings. When there are conduct issues and no Part 36 offer, the court may order costs on the indemnity basis to reflect the extra work and wasted time caused by that conduct and to deter improper behavior. On the indemnity basis, the successful party is much more likely to recover the costs they properly incurred, with fewer deductions for items that would be disallowed under the standard basis. The presence of a Part 36 offer can also trigger indemnity costs in certain circumstances, but even without an offer, conduct issues alone can justify indemnity costs, which is why this option is the best choice. The other options aren’t correct because the default route in the absence of special factors is a standard basis assessment (not automatically indemnity), fixed rates are not the typical method for ordinary costs recovery, and costs are still assessed rather than being automatically unawarded.