30 July 2015 – Following the decision by an ICSID tribunal to order the claimant to provide security for costs in RSM v St Lucia, another ICSID tribunal (Professors Pierre Mayer, Emmanuel Gaillard and Brigitte Stern) in Eurogas and Belmont v The Slovak Republic has considered a similar application.
The Slovak Republic had applied for security for costs on the basis that the claimants are funded by a third party litigation funder.
In refusing the application, the tribunal said:
Harbour commented: “”The Eurogas tribunal has taken a measured approach to the issue, which should restore the balance that appeared to have been in peril after the decision in RSM and the somewhat heated discussion that followed. There will be circumstances in which orders for security for costs are appropriate, whether or not a claimant is funded by a third party funder (or its law firm, or a combination). We trust that future tribunals will follow the Eurogas approach i.e. start from the position that security for costs is only to be granted in exceptional circumstances, recognise that third party funding is not (in and of itself) an exceptional circumstance, then go on to address the individual situation on its particular merits.”
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