Who Pays? Security For Costs In International Commercial Arbitration

Abstract

An order for security for costs serves as a procedural safeguard, ensuring that a claimant can cover the respondent's legal costs should the claim be unsuccessful. While well-established in litigation, its adoption in international arbitration has been more gradual. Nonetheless, in recent years, there has been an increase in security for costs orders, accompanied by growing attention to the issue, largely driven by the rise of third-party funding. Arbitral tribunals continue to grapple with the challenge of balancing respondents' right to recover costs with claimants 'right to access justice–an issue further complicated by the absence of uniform standards to guide its application.