Third-Party Funding in Arbitration & International Proceedings

In the realm of legal disputes, having the financial means to pursue justice is paramount. Third-party funding, where external entities finance legal cases in exchange for a share of the eventual proceeds, is gaining widespread prominence and acceptance. This article aims to demystify third-party funding, particularly its nuances in arbitration versus court proceedings, legal considerations, and associated obligations.

The availability of third-party funding depends on several factors, such as the nature of the case and the legal framework of the jurisdiction involved. While it is commonly accessible in regions like the United States, Australia, Hong Kong, and Singapore, its availability may be dependent upon the specifics of each case.

Historically, third-party litigation funding encountered legal obstacles due to concerns regarding its potential impact on the integrity of justice. However, contemporary courts recognise its role in facilitating claims that might otherwise be financially unfeasible, notably the sub-postmaster’s case. To ensure compliance with legal standards, funders must refrain from exerting any influence over proceedings. They must maintain independence, and adhere to ethical guidelines established by organisations such as the Association of Litigation Funders. Importantly, care should be taken to ensure that no conflict of interest can arise between you, your solicitor and the funder.

Funding commitments

Engaging in third-party funding entails obligations beyond financial commitments. Litigants must fully cooperate with the legal process, including disclosure requirements, and demonstrate a vested interest in achieving favourable outcomes. While third-party funding alleviates financial burdens, litigants must also be prepared for the challenges and responsibilities associated with this arrangement.

There is real opportunity to reap significant rewards upon achieving success. Moreover, there are various potential financiers, each with unique areas of expertise, terms, conditions, requirements, and financial projections.

In conclusion, third-party funding has emerged as a valuable resource for navigating complex legal landscapes. Particularly in arbitration and international proceedings. Understanding its intricacies, legal ramifications, and associated obligations is essential for parties seeking to use this funding method effectively.

For further insights into litigation funding, contact us now at info@3payglobal.com.