Introduction

As we all know, costs of international arbitrations can be quite substantial. This can put a respondent faced with a claim without merit by an impecunious party into a catch-22-situation. If it does not defend the claim, it runs the risk of a default judgement. If it decides to defend the claim - which will usually be advisable - it risks being left with its costs. An order for security of costs seeks to resolve this dilemma. Overview of this briefing note: What is an order for security of costs? Who can request it? Why request ...