Readers of this blog will need no reminding that, in the Queen Mary-White & Case 2015 International Arbitration Survey, the seats of Hong Kong and Singapore were amongst the top five most preferred and widely used seats by respondents to that survey. Both jurisdictions are known for adopting competitive and innovative arbitration laws to promote…

Security for costs, a measure which is perceived as a savior for those who are forced to arbitrate with (allegedly) impecunious parties, can have several connections with the industry of third party funding. Third party funding, as a new trend in international arbitration, has certainly disturbed many waters, including those related to security for costs….

If James Bond practiced law, it would be international arbitration. Don’t believe me? Just consider how many international arbitration cases could be great plots for a James Bond movie. Take, for example, the case in which an Israeli investor was arrested in Tbilisi and jailed following a cognac-laced sting operation that caught the investor on…

The line between third-party funders and law firms is blurring. Originally, there were only two traditional types of third-party funding arrangements. In the first type, the third-party funder makes an agreement to finance the legal expenses of the claimant or respondent in a case in exchange for a portion of the claimant’s awarded amount, if…

1. In the past weeks, much ink has been spilt over the recent decision of the High Court of Justice in the Essar v. Norscot case. In his decision, J. Waksman QC confirmed the award made by Sir Philip Otto in an ICC arbitration seated in London. A broad description of this case has already…

A new development in the third party funding arena prompts an increased analysis of the theoretical foundations of the nature of third party funding. At the moment, there are divergent views on its proper place and treatment, and with increased prevalence a piecemeal approach with little theoretical groundwork risks creating a minefield resulting in unpredictability…

While the great third-party funding debate appears to centre on the issues of disclosure, arbitrator bias, security for costs, and regulation, the potential conflicts between third-party funding and confidentiality in arbitration proceedings have so far received comparatively little attention. Perhaps not rightly so, as the following example shall illustrate: The claimant in a commercial arbitration has agreed…

In recent years, international arbitration has emerged as a high-growth area for the litigation funding industry. All the major funders now have international arbitration cases in their portfolios, and many are aggressively seeking more – especially investment treaty cases. But the participation of funders in international arbitration raises a number of issues, some national and…

More or less since 2010, the topic of third party funding (“TPF”) in connection with international arbitration has been everywhere (heard of, seen in practice, written about, presented at conferences, and so on). In a series of recent developments however, TPF has been, for the first time, made subject to mandatory provisions contained in the…

The ICC’s adoption, on 12 February 2016, of a “Guidance Note for the disclosure of conflicts by arbitrators,” which “aims at ensuring that arbitrators are forthcoming and transparent in their disclosure of potential conflicts” (See ICC Press Release dated 23.2.2016, “ICC Court adopts Guidance Note on conflict disclosures by arbitrators”), is a development of interest…

The Singapore International Arbitration Centre (“SIAC”) published a draft of new investment arbitration rules (the “draft SIAC IA Rules”) for public comment on 1 Feb 2016. They will be finalized on 27 May 2016. The draft SIAC IA Rules are a unique hybrid of modern commercial arbitration rules and specialist investment arbitration rules (e.g. the…

The last several years have witnessed a tremendous increase in the participation of third-party funders in international arbitration.  A growing number of claimants are seeking external funding, either because they lack the necessary funds to commence arbitration proceedings (which are becoming increasingly more expensive) or because they want to maintain cash-flow and offset the risk…

Third party funding (“TPF”) has attracted a great deal of attention from the legal community, as it offers significant advantages and poses serious risks for international arbitration. Besides guaranteeing access to justice for those who are financially incapable of bearing the costs of an arbitration proceeding, the funded party will most certainly benefit from limiting…

On 19 October 2015, the Hong Kong Law Reform Commission published a Consultation Paper recommending that third party funding should be permitted for arbitrations in Hong Kong. The Paper invites public comment on the recommendation, and how third party funding should be adopted in Hong Kong. A link to the paper can be found here….

Third-party funding is a controversial, dynamic, and evolving phenomenon in international arbitration. Proponents and opponents of third-party funding debate whether the practice will make a positive or negative impact on the worldwide system of dispute resolution. Both sides of the debate make predictions regarding the effect of third-party funders through the cases that they finance….

The IBA recently revised its Guidelines on Conflicts of Interest in International Arbitration. This was the culmination of a review by the IBA Arbitration Committee, which began in 2012. The salient changes address the rise of advance declarations by arbitrators; third-party funding; increasing significance of arbitral secretaries; and the possibility that an arbitrator, and counsel…

and Paula Gibbs, Chapman Tripp Introduction The spotlight continues to shine on third party funding in international arbitration, following the recent Alemanni decision and unsuccessful disqualification proposal filed against Dr Gavan Griffith QC in the RSM v St Lucia ICSID arbitration (reported on in this blog by Carlos Gonzalez-Bueno and Laura Lozano). A similar spotlight…

and Laura Lozano, González-Bueno & Asociados It is known that third party funding has become one of the hot topics in the international arbitration arena. Indeed, it is not the first time this blog deals with the matter. Amongst others, Munir Maniruzzaman and Lisa Bench Nieuwveld have already explored this tool that provides the necessary…

By Pia Eberhardt, Corporate Europe Observatory, and Cecilia Olivet, Transnational Institute At the end of November, Corporate Europe Observatory and the Transnational Institute published Profiting from Injustice, a report that looks at the role of law firms, arbitrators and third-party funders in investment treaty arbitration. In it, we argued that the arbitration industry has fuelled…

The saga with Yukos Oil and its nationalization – and the effects on its various related entities – has been ongoing for quite some time. As reported in the news of late (see e.g. Business Wire.com and Cisarbitration.com), in late July an arbitral award was rendered under the auspices of the Stockholm Chamber of Commerce….

A central concern the in the third party funding arena is: Whether or not parties who are funded by a third party funder should be obligated to disclose this funding relationship. Looking at a recent conference in which many key funders participated on sharing their perspectives, it appears that many funders preferred to keep their…

Yesterday’s post set the stage by describing the main provisions of a new voluntary Code of Conduct for “funding of resolution of disputes within England and Wales,” released in November 2011. Today’s post examines criticisms of that initiative from several corners, and notes important questions that persist in the arbitration arena, including issues surrounding the…