ABSTRACT
This chapter deals principally with security for the parties’ costs. In London arbitrations the successful party is generally awarded its costs. An order that one party must provide security for costs may be granted during the reference to ensure that a successful respondent will be able to enforce an award of costs with ease. The purpose of an order for security for costs is to ensure that if a respondent defeats the claim brought against him he will have funds available within the jurisdiction against which he can enforce an award of costs. Security for costs is a recognised remedy in arbitration under London Maritime Arbitrators Association (LMAA) Terms even though orders are only actually made in a relatively small percentage of LMAA arbitrations. The tribunal may also order the costs of the application to be costs in the arbitration, that is recoverable by the party who is ultimately awarded their costs of the arbitration.
