Third Party Funding

Looks at legal, economic and policy issues related to third party funding in common law, civil law jurisdictions and international contexts.

Since the first edition of this invaluable book in 2012, third-party funding has become more mainstream in international arbitration practice. However, since even the existence of a third-party funding agreement in a dispute is often kept secret, it can be difficult to glean the specifics of successful funding agreements. This welcome book, now updated, expertly reveals the nuances of third-party funding in international arbitration, examines the phenomenon in key jurisdictions, and provides a reliable resource for users and potential users that may wish to tap into and make use of this distinctive funding tool. Focusing on Australia, the United Kingdom, the United States, Germany, the Netherlands, Canada, and South Africa, the authors analyze and assess the legal regime based upon legislation, judicial opinions, ethics opinions, and practitioner anecdotes describing the state of third-party funding in each jurisdiction. In addition to updating summaries of the law of the various jurisdictions, the second edition includes a new chapter addressing third-party funding in investor-state arbitration. Among the issues raised and examined are the following: · payment of adverse costs; · “Before-the-Event” (BTE) and “After-the-Event” (ATE) insurance; · attorney financing: pro bono representation, contingency representation, conditional fee arrangements; · loans; · ethical doctrines affecting the third-party funding industry; · possible future bundling, securitization, and trading of legal claims; · risk that the funder may put its own interests ahead of the client’s interests; and · whether the existence of a funding agreement must or should be disclosed to the decision maker. The second edition also includes discussion of recent institutional developments as they relate to third-party funding, including the work of the ICCA-Queen Mary Task Force on Third-Party Funding and how third-party funding is being incorporated into arbitral rules and investment treaties. Ably providing a thorough understanding of what third-party funding entails and what legal parameters exist, this book will be of compelling interest to parties aiming to take advantage of the high values, speed, reduced evidentiary costs, outcome predictability, industry expertise, and high award enforceability characteristic of the third-party funding arrangements available in international arbitration.

This book represents a comparative study of Third Party Funding (TPF) and its regulation in England, Hong Kong, Singapore, the Netherlands and the Mainland of China. It provides a general review of the background in which TPF grows and the platform where third party funders are allowed to operate. In each and every chosen jurisdiction, the book analyses the legal risks related to TPF, the regulatory measures and the questions surrounding the challenges that lay ahead. This book is featured by the empirical study of the Chinese TPF market. As of the time of this writing, TPF activities operating in China have not been expanded upon in English or Chinese literature. The language barrier may be one reason. The lack of empirical materials may also contribute to this situation. In order to obtain some first-hand evidence of the TPF market in China, the author conducted empirical research in Shenzhen, with the assistance of Chinese third party funders and some local organizations and authorities. The empirical study took the form of questionnaire surveys. The first survey saw in total 175 responses, and the second saw 18 responses. Due to the fact that many funding arrangements for commercial disputes are kept in the dark, it is hard, if not impossible, to measure the size of the Chinese TPF market. This study provides a dataset that serves a humble purpose; namely to offer an insight into the Chinese TPF market, rather than to grasp the full picture of the industry.

Introduction --The Various Forms of Third-Party Funding in International Arbitration --Litigation Funding in International Arbitration --Disclosure of Third-Party Funding in International Arbitration Proceedings --Privilege Protection of Documentary Evidence and Third-Party Funding --Jurisdictional Issues and Third-Party Funding --Impartiality and Independence of Arbitrators and Third-Party Funding --Confidentiality in International Arbitration Proceedings and Third-Party Funding --Security for Costs and Third-Party Funding --Awarding of Costs and Third-Party Funding --Summary of Part I and Part II --Concluding Remarks.

The use of third-party funding in the UK has been increasing and has moved into the mainstream as a funding option for clients involved in litigation, particularly following on from the positive endorsement of litigation funding by Lord Justice Jackson in his Review of Civil Litigation Costs where he said: 'I remain of the view that, in principle, third-party funding is beneficial and should be supported.'. This has now culminated in the formation of the Association of Litigation Funders to monitor compliance and the launch of the Code of Conduct for those funding in England and Wales. This practical guide to litigation funding provides the first comprehensive one-stop third-party funding reference to help practitioners in preparation for seeking funding and in their decision making. It examines the impact of the Jackson Reforms and Damages Based Agreements as well as the Code of Conduct and the Association of Litigation Funders. It would also include practical examples and a review of notable cases, including the important decisions of Gulf Azov Shipping, Arkin, London & Regional and Merchantbridge and their impact on funders, solicitors, and clients.

This book, expertly revealing the nuances of third-party funding in international arbitration, examines the phenomenon in key jurisdictions around the world and provides a reliable resource for users and potential users that may wish to tap into and make use of this distinctive funding tool. 0The authors analyze and assess the legal regime in a variety of countries based upon legislation, judicial opinions, ethics opinions, and practitioner anecdotes describing the state of third-party funding in that jurisdiction. They describe how courts and legislative bodies around the world have thus far handled the major ethical issues and concerns that affect the practice of third-party funding.

This collection explores the practical operation of the law in the area of litigation costs and funding, and confronts the issue of how exposure to cost risks affects litigation strategy. It looks at the interaction of the relevant legal regime, regulatory framework and disciplinary rules with the behaviour of litigants, courts and legislatures, examining subjects such as cost rules and funding arrangements. The book discusses a wide range of topics such as cost-shifting rules, funding and mass tort litigation, cost rules and third-party funding (TPF) rules in specific areas such as intellectual property (IP) litigation, commercial arbitration, investment arbitration, the role of legal expense insurance arrangements, fee regulation and professional ethics. The contributors include renowned scholars, experts in their respective fields and well-versed individuals in both civil procedure and the practice of litigation, arbitration and finance. Together, they present a broad approach to the issues of costs, cost-shifting rules and third-party funding. This volume adds to the existent literature in combining topics in law and practice and presents an analysis of the most recent developments in this fast developing area.