Security for Costs in International Arbitration
Article from: TDM 5 (2006), in Procedure, Advocacy, Strategy and Tactics in Arbitration
Arbitration tribunals have long had authority, at the close of proceedings, to determine whether the losing party should cover some or all of the prevailing party's arbitration expenses, including its legal fees. From the perspective of respondents, the possibility of recovering costs at the end of the day may be the only hope for emerging unscathed from a dispute they did not initiate. Yet this hope is only as meaningful as the claimant's ability or willingness to honor a cost award. It is scant comfort where the claimant is insolvent or likely to become so, or may take steps ...