AA 1996—security in the amount of the award (s 70(7))
Produced in partnership with King & Spalding LLP
AA 1996—security in the amount of the award (s 70(7))

The following Arbitration guidance note Produced in partnership with King & Spalding LLP provides comprehensive and up to date legal information covering:

  • AA 1996—security in the amount of the award (s 70(7))
  • Security in the amount of the final award

Challenges and appeals for error of law against arbitral awards to the court under sections 67, 68 and 69 of the Arbitration Act 1996 (AA 1996) have the capacity to substantially delay enforcement and, in some cases, prejudice the ability of an award creditor to collect under its award. Indeed, in some instances, losing parties may try to use AA 1996, ss 67–69 for this very purpose.

The English court’s powers to order security in the amount of the award (AA 1996, s 70(7)) and security for costs (AA 1996, s 70(6)) in respect of any challenge/appeal are therefore important tools that should be considered by any respondent to such a challenge/appeal. Used in appropriate circumstances, the security provisions under AA 1996, s 70 can save parties substantial time and costs.

This Practice Note considers the power of the English court to order security in the amount of the award. For guidance on the court’s power to order security for costs in respect of a challenge to or appeal against an arbitral award, see Practice Note: AA 1996—security for costs—the courts (s 70(6)).

Security in the amount of the final award

AA 1996, s 70(7) (which is a non-mandatory provision of the Act) provides that:

‘[t]he court may order that any money payable under the award shall be brought into court or otherwise