Article
Security For Costs In Investment Arbitration
Security for costs has become an increasingly important procedural issue in investment arbitration. A respondent State may spend millions defending a treaty claim and, even after prevailing and obtaining a costs award, remain exposed to non-recovery where the claimant is insolvent or has few assets against which the award can be enforced. Security for costs is designed to mitigate that risk before a final costs award is rendered.
Aceris Law