Enforcement of awards: security for costs

The decision of the Court of Appeal in Gater Assets Ltd v Nak Naftogaz Ukrainiy [2007] 2 Lloyd’s Rep 588 has led to a great deal of uncertainty on the question of whether a court can order the applicant for an order enforcing an award to give security for the defendant’s costs and, if so, how the court’s discretion should be applied. The valuable analysis of Burton J in Diag Human SE v Czech Republic [2013] EWHC 3190 (Comm) has confirmed that jurisdiction exists, but that it should be exercised with caution.

Diag : the facts