X v Y

X v Y

There is a real risk that X’s assets are not readily available for satisfaction of any costs order, justifying an order for security for costs. However, the challenges to the award do not materially prejudice Y’s ability to enforce the award, so an order for payment into court is not justified.

Parties
Claimant/respondent; Defendant/applicant: X; Defendant/applicant; Claimant: Y
Jurisdiction
England and Wales
Judgment Date
07 May 2013
Procedural Posture
Commercial Arbitration Related Application / Ruling on Application for Security for Costs and Payment Into Court Pending Challenge to Arbitral Award
Outcome
Application for security for costs granted; application for payment into court refused.
Legal Topics
Security for Costs, Payment Into Court, Enforcement of Arbitral Awards, Jurisdictional Challenge, Serious Irregularity Challenge
Arbitration Commercial Law Security for Costs Payment Into Court Enforcement of Arbitral Awards Jurisdictional Challenge Serious Irregularity Challenge

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Parties

X

Claimant/respondent; Defendant/applicant

Y

Defendant/applicant; Claimant

Procedural Posture

Commercial Arbitration Related Application / Ruling on Application for Security for Costs and Payment Into Court Pending Challenge to Arbitral Award

Legal Issues

  1. 1 Whether X should provide security for Y’s costs of resisting challenges to the arbitral award under sections 67 and 68 of the Arbitration Act 1996
  2. 2 Whether X should be ordered to pay into court the sum awarded to Y under the fourth arbitral award pending determination of the challenge

Ratio Decidendi

There is a real risk that X’s assets are not readily available for satisfaction of any costs order, justifying an order for security for costs. However, the challenges to the award do not materially prejudice Y’s ability to enforce the award, so an order for payment into court is not justified.

Court Disposition

Application for security for costs granted; application for payment into court refused.

Orders

  • X to provide security for Y’s costs of resisting challenges to the award in the sum of £120,000.
  • No order for payment into court of the sum awarded under the fourth arbitral award.