Short Practical Notes on Security for Costs in Arbitration

Security for costs (cautio iudicatum solvi) is one of the conservatory or interim measures that an Arbitration Tribunal may order upon request of one of the parties. In this regard, the article deals with the following issues: the authority of the Arbitration Tribunal to order security for costs; legal and factual requisites for ordering security for costs; the restrictive approach generally adopted by arbitrators in ordering security for costs; the fumus boni iuris: the rule "costs follow the event"; the periculum in mora: the voluntary liquidation; the serious deterioration of the opponent's financial situation before signature of the terms of reference; the bad faith manoeuvres by the opponent.