Standard vs Indemnity?
Where parties have been involved in litigation, the normal Order would be for costs to be payable on the standard basis. Where one party is found to have conducted themselves improperly, either abusing the Court process or by conduct generally, the Court may make an indemnity costs Order against them to reflect the conduct and the fact that the other side has incurred costs unnecessarily. If the Order is silent (i.e. does not mention) on the basis of costs, then the legal charges are payable on the standard basis.
Costs payable under a contract, such as between a lawyer and their client or under a mortgage, are normally paid on the indemnity basis. This can lead to the client having to pay the difference, if the amount of costs recovered from the other side is less than the solicitor’s bill.