Stay of Enforcement of the Arbitral Award Pending ICSID Annulment Proceedings - Chapter 7 - Annulment of ICSID Awards

Paul Friedland, Partner, White & Case LLP New York; Chair of the firm's International Arbitration Practice Group. Mr. Friedland is Chair of the American Arbitration Association’s Arbitration Committee and a Member of the American Arbitration Association’s Board of Directors.

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Originally from: Annulment of ICSID Awards

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The practice of ICSID ad hoc committees on the subject of stay of enforcement of an arbitral award can be summarized in a single sentence: a party applying for the annulment of an ICSID award can obtain from the ad hoc committee a stay of the award’s enforcement pending its annulment application on the condition that it provide a bond in the full amount of the award rendered against it.

The requirement of a bond as a condition of a stay of enforcement is a practice that is permitted, not required, by the ICSID Convention and Arbitration Rules and, therefore, it is a matter of discretion for ICSID ad hoc committees. Three ad hoc committees have exercised this discretion and have granted a stay of enforcement conditioned on a bond. In a fourth case, the parties agreed voluntarily on a stay of enforcement in exchange for a bond.