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ARTICLE · 20 MAY 2019

"Interim Measures" In Arbitration: Requiring Pre-Hearing Security For Payment Of An Eventual Final Award

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Can an arbitrator require an arbitrating party to post collateral prior to a hearing on the merits of the substantive claim(s) as security with respect to payment of a possible final award

United StatesLitigation, Mediation & Arbitration

Can an arbitrator require an arbitrating party to post collateral prior to a hearing on the merits of the substantive claim(s) as security with respect to payment of a possible final award against that party? And can such an interim award then be confirmed and enforced by a Federal court? "Yes" and "yes". First, absent an agreed prohibition, it is usually within an arbitrator's authority to take steps to insure that an eventual merits award will not be rendered meaningless, and requiring the posting of security to insure the payment of such an award is an unremarkable, if not well known, form of interim relief that an arbitrator can grant. Furthermore, an interim award of this sort is considered final for purposes of judicial review, including confirmation.

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