Enforcement of arbitration costs against non-paying parties—the Colombian Supreme Court’s recent ruling
Arbitration analysis: The Supreme Court of Justice of Colombia recently ruled on the recognition of a partial arbitral award rendered by an ICC tribunal seated in New York. The award ordered the respondent to reimburse USD 125,000 to the claimant, who had advanced the portion of arbitral costs that the respondent failed to pay. The court held that the obligation to pay advances on arbitral costs is contractual in nature and may therefore be enforced through a partial award, rather than being limited to procedural sanctions. The court further clarified that insolvency or reorganization proceedings do not constitute an obstacle to either the continuation of arbitration or the recognition of partial or final awards, at least under Colombian law. The decision provides important guidance for international arbitration practitioners regarding cost allocation, partial awards, and proceedings involving financially distressed parties. Written by Santiago Cruz Mantilla, partner, and Esteban Arcila Martínez, law student, at Philippi Prietocarrizosa Ferrero DU & Uría.