Abstract

Party Tactics with Regard to Payment of Advances: A Case Study

By Carlos de los Santos and Elisa Vicente Maravall

English

This paper addresses two contrasting tactics with respect to the payment of an advance on costs: Claimant's request for a partial award ordering Respondents to pay their share of the advance on costs versus Respondents' objection and request for security for costs. While the paper focuses mainly on the strategies of opposing parties in proceedings under the ICC Arbitration Rules, the relevant rules of other leading arbitration institutions are reviewed briefly too. There are some useful lessons to be learned from the case regarding payment of the advance on costs and the possibility of substitution, as well as the approach taken by the arbitral tribunal when deciding on each side's requests, in particular its consideration of the requests concurrently and the weight given to Claimant's financial position.