Commentary on Sections Schedule 1 – Scottish Arbitration Rules Rule 64 – Security for expenses Default
221.Rule 64 is a default rule that, in the absence of agreement to the contrary, an arbitrator has the power to order a claimant or counterclaimant to provide security for the expenses of the arbitration and if that order is not complied with to make an award dismissing any claim by that party. Security should be at the arbitrator’s discretion, exercised according to the general principles of the Act. Rule 64(2) provides that residence outside the UK may not be the sole reason for requiring security (otherwise it may be unfair to those involved in international arbitration) nor should incorporation or management of a company outwith the UK.