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 arrangements;

• loans;

• 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 privilege;

• 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 interests; and

• whether the existence of a funding agreement must or should be disclosed to the decision-maker.

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.

"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 jurisdictions."

"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