London Arbitration 5/04 | ZFZ Postcard Cases
Security actions are a crucial part of maritime arbitration. But what is the status of the costs incurred in obtaining such security?
London Arbitration 5/04 is a short case report on a significant arbitration award. The rules regarding costs of Court proceedings are typically considered to be broad enough to encompass costs security actions. However, pursuant to London Arbitration 5/04, that same entitlement does not exist in arbitration under the Arbitration Act 1996.
Therefore, the costs of obtaining security were not deemed recoverable. London Arbitration 5/04 has subsequently been cited with approval in the High Court (Grindrod Shipping v HMM [2018]).