Contributed By Norburg & Scherp Advokatbyrå
The courts and the arbitral tribunals normally require that the requesting party provides reasonable security, eg a bank guarantee or a pledge over a bank account, for any loss that may be suffered by the other party as a result of the interim measure. As regards security for a party’s litigation costs, at the request of a respondent, a court can only order claimants from certain jurisdictions outside the European Union to provide such security. It is less clear whether an arbitral tribunal has such authority to order security for a party’s costs in the arbitration. It may be noted that the SCC revision committee has proposed to introduce a provision to this effect in the new SCC Rules.