Third-party fund­ing and pro­ced­ur­al bal­ance in in­ter­na­tion­al ar­bit­ra­tion

De­vel­op­ment sum­mary

The art­icle ad­dresses how third-party fund­ing (TPF) can widen access to in­ter­na­tion­al ar­bit­ra­tion while cre­at­ing risks for cost re­cov­ery and pro­ced­ur­al bal­ance, in­clud­ing situ­ations where re­spond­ents face sub­stan­tial ex­pos­ure if funded claimants cannot sat­is­fy ad­verse awards. It com­pares ap­proaches in lead­ing common law jur­is­dic­tions and eval­u­ates dis­clos­ure ob­lig­a­tions, cap­it­al re­quire­ments and security-for-costs prac­tice, then pro­poses re­forms that would in lim­ited cir­cum­stances allow tribunals to al­loc­ate costs dir­ectly to fun­ders, strengthen pre­sump­tions in favour of se­cur­ity for costs, and im­prove trans­par­ency and solvency stand­ards.