European Academic Research ISSN 2286-4822
ISSN-L 2286-4822
Impact Factor: 3.4546 (UIF)
DRJI Value : 5.9 (B+)
Article Details :
Article Name :
The Authority of Arbitrators to Order Security for Legal Costs in International Commercial Arbitration
Author Name :
M.Sc. XHULIO DOKU1
Publisher :
Bridge Center
Article URL :
Abstract :
Arbitration is one of the means of resolving disputes, which has taken a huge strain in recent years due to the advantages that this alternative dispute resolution brings, such as flexibility, confidentiality, speed, informality, etc. However, the legal costs in arbitration are very large. During arbitration proceedings, parties must pay for their counsels legal services, but also for the administrative costs of arbitration and arbitrators fees. Consequently, if an impecunious claimant raises a groundless claim in arbitration, the respondent will not be able execute an arbitral award in its favour which orders claimant to reimburse legal costs. In order to protect respondents from such situation, international practice of arbitration has begun to apply a new interim measure which is widely known as security for costs. Under such measure, the arbitral tribunal orders claimant to provide security for respondent’s legal costs in arbitration, in case an adverse arbitral award is rendered for claimant. Different arbitrators, such as, for example, Gary Born, have considered security for costs in arbitration as sui generis interim measure. This paper is an attempt to analyze the authority of Arbitral Tribunal to order a party to provide security for costs under UNCITRAL Model Law on International Commercial Arbitration and arbitration rules of some of most important arbitral institutions worldwide.
Keywords :
arbitration, security, costs, power, law, model law, interim, measure.

Announcements
New Launched Project
onlineresearch
Recommend & Share