K/S A/S Bani and K/S A/S Havbulk v. Korea Shipbuilding and Engineering Corporation - Court of Appeal (Dillon, Woolf and Bingham L.JJ.) - 7 July 1987

Ordering security for costs in arbitration proceedings

Norwegian buyers entered into contracts for the purchase of newbuildings to be built by Korean shipbuilders. The contract provided that any disputes should be resolved by arbitration in London. An arbitrator was to be appointed by each party. Both arbitrators would appoint a third arbitrator. If they failed to agree, the appointment would be made by the President of the London Maritime Arbitrator’s Association. The contracts also incorporated English law.