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.
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.