This welcome 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.
The 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. 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, including contingency representation and conditional fee
ethical doctrines influential to the continued existence and viability of the
third-party funding industry;
possible waivers of the attorney work-product doctrine or attorney-client
potential encouragement of non-meritorious claims;
possible future bundling, securitization, and trading of legal claims;
risk that the funder may put its own interests ahead of the client’s
whether the existence of a funding agreement must or should be disclosed to
The book concludes with observations regarding third-party funding in
international investment arbitration and predictions regarding the future of
the third-party funding industry worldwide.
Focusing on the key jurisdictions that have well-developed third-party funding
markets – Australia, Germany, the United Kingdom, the United States, the
Netherlands, Canada, and South Africa – and regional overviews for Europe,
Asia, the Middle East, Africa, and Latin America, this book ably creates a
reference source for 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.
1. Introduction. 2. Mechanics of Third-Party Funding Agreements:
A Funder’s Perspective. 3. Ethical Considerations in Third-Party
Funding. Section I: Key Third-Party Funding Markets. 4.
Third-Party Funding in Australia. 5. Third-Party Funding in the United
Kingdom. 6. Third-Party Funding in the United States. 7.
Third-Party Funding in Germany. Section II: Other Important Third-Party
Markets. 8. Third-Party Funding in the Netherlands. 9.
Third-Party Funding in Canada. 10. Third-Party Funding in South Africa.
Section III: Regional Overviews. 11. Overview of Third-Party
Funding in Europe. 12. Overview of Third-Party Funding in Asia. 13
. Overview of Third-Party Funding in Latin America, the Middle East and
Africa. 14. Conclusion.
"This book is a great source for those interested in this issue - it
provides a lot of recent examples and compares different approaches and views
on third-party funding in international arbitration in different
"It describes in detail how third-party funding works in certain
jurisdictions by comparing local legislations, ethics, opinions and
discussions between the practitioners. The author compares and describes
approaches that courts take in different countries while handling ethical
issues relating to third-party funding."
"This book may be recommended to those seeking information regarding
practical aspects of third-party funding around the globe, both in civil and
common law jurisdictions."
Reviewed by Yaroslava Sorokhtey in Association of International Arbitration
Newsletter, January 2013