On 1 September 2021 the plaintiff in a civil proceeding made an offer of compromise pursuant to Order 26 of the Supreme Court Rules (NT) to settle the plaintiff's claim against the defendant. The plaintiff's offer was that the defendant pay the plaintiff $250,000 inclusive of costs.The offer of compromise was open for acceptance until close of business 16 September 2021. The defendant rejected the offer.

On 2 February 2022 the plaintiff received judgment in her favour in the amount of $350,000.

The plaintiff has paid her solicitor legal fees in the total amount of $150,000 inclusive of GST.

The Court made orders in respect of costs as follows:

1. The defendant is to pay the plaintiff's costs up to 1 September 2021 on a standard basis, to be taxed or agreed.
2. The defendant is to pay the plaintiff's costs from 17 September 2021 on an indemnity basis, to be taxed or agreed.

Assume you act for the defendant who has been ordered to pay the plaintiff's costs as set out in the above orders. Provide the defendant with a written letter of advice in relation to the costs order, in particular:

1. The difference between costs on an indemnity basis and costs on a standard basis, including an explanation as to why the defendant was ordered to pay costs from 17 September 2021 on an indemnity basis;

1. What procedure is available to the defendant if there can be no agreement reached between the parties as to costs and explain that procedure; and

1. Whether the plaintiff will likely recover from your client her legal costs of $150,000 given the orders made, and if not, why not.