Security for Costs
Security for Costs is a common procedure in international arbitration where one party (usually the respondent) asks for the other party to provide a financial guarantee to cover potential legal costs. Think of it like a safety deposit - if the case is lost, this money ensures that legal fees and expenses can be paid. This concept is particularly important in international disputes where parties are from different countries, and collecting costs after a case might be difficult. It's a protective measure that arbitration specialists need to understand and handle as part of their role.
Examples in Resumes
Successfully handled Security for Costs applications in multiple ICC arbitrations
Advised clients on Security for Costs strategies in international commercial disputes
Prepared comprehensive Security for Costs motions resulting in favorable tribunal decisions
Typical job title: "International Arbitration Lawyers"
Also try searching for:
Where to Find International Arbitration Lawyers
Professional Organizations
Online Resources
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How do you evaluate whether to recommend pursuing a Security for Costs application?
Expected Answer: Should discuss assessing the opposing party's financial situation, likelihood of success, timing considerations, and strategic implications for the overall case strategy.
Q: What factors would you consider when determining the appropriate amount for Security for Costs?
Expected Answer: Should explain consideration of estimated legal fees, tribunal costs, expert costs, and the principle of proportionality while maintaining access to justice.
Mid Level Questions
Q: What are the typical grounds for requesting Security for Costs?
Expected Answer: Should mention financial difficulties of the opposing party, risk of non-payment, location of assets, and previous payment behavior.
Q: How would you draft a Security for Costs application?
Expected Answer: Should describe the key elements: demonstrating risk of non-payment, evidence of opposing party's financial situation, and detailed cost calculations.
Junior Level Questions
Q: What is Security for Costs and when might it be needed?
Expected Answer: Should explain basic concept of financial security in arbitration and common situations where it might be requested.
Q: What are the main forms of Security for Costs?
Expected Answer: Should identify basic forms like bank guarantees, escrow accounts, or insurance bonds.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of arbitration procedures
- Research on Security for Costs precedents
- Drafting simple procedural documents
- Assisting with cost calculations
Mid (2-5 years)
- Drafting Security for Costs applications
- Managing client expectations
- Analyzing opposing party's financial status
- Understanding enforcement issues
Senior (5+ years)
- Strategic advice on Security for Costs
- Leading complex applications
- Negotiating security arrangements
- Managing tribunal relationships
Red Flags to Watch For
- No experience with international arbitration rules
- Lack of understanding of cross-border enforcement
- Poor knowledge of cost assessment principles
- No experience with procedural applications
Related Terms
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