Arbitration News: Security for Costs in Arbitration – Is it likely to be ordered?

Security for costs is an interim measure sought by a party (usually the Respondent) to protect against the potential scenario that it is eventually successful in the arbitration and is awarded its costs to be paid by the claiming party but the claiming party has insufficient money to pay the adverse costs order made against it.

In this article, Antony Smith and Anna Braden outline why a party may want to seek security for costs, what arbitration rules provide for security for costs, the common grounds for seeking security for costs and the potential difficulties in obtaining an order for security for costs in arbitration proceedings.