The applicant sought to enforce a $1 million USD arbitral award obtained in China against the respondent for unpaid brake pads.
The respondent sought an adjournment of the enforcement application and an order for security for costs, while the applicant cross-moved for an order requiring the respondent to pay the arbitral award into court.
The motion judge ordered the applicant to post security for costs and dismissed the cross-motion.
On appeal to the Divisional Court, the court found that the motion judge erred in principle by failing to undertake a holistic analysis of the justness of the security for costs order, and set it aside.
However, the court upheld the refusal to order the advance payment of the arbitral award into court, as Article 36(2) of the International Commercial Arbitration Act was not engaged because the respondent had not applied to set aside the award in China.