Unionmatex v. Turkmenistan: The Emerging Jurisprudence of Security for Costs in Investor- State Arbitration

Applications for security for costs raise fundamental principles of legal philosophy, with leading arbitrators being divided on whether such orders should be available in investor-State arbitration and, if so, in what circumstances. Security for costs has only ever been granted in three decisions, and in two of those decisions the tribunal has been firmly divided – a rarity for procedural orders. Unionmatex v. Turkmenistan marks the third such decision. This article summarizes the key findings in the case, outlines the framework for making such orders in International Centre for Settlement of Investment Disputes (ICSID) proceedings, summarizes the prior jurisprudence in this area, and concludes with a discussion of how the jurisprudence is likely to develop in the future. Unionmatex, Security, Costs, ISDS, access, justice, third, party, litigation, funding