Funding International Arbitration

Introduction 7 Sherina Petit Stewarts Nosherwan Vakil The 36 Group I. The growth of the funding market in the UK and beyond 9 Stavros Brekoulakis National University of Singapore; 3 Verulam Buildings Julian DM Lew KC Twenty Essex; Queen Mary University of London Simona Valkova Independent tribunal secretary 1. History and development of third-party funding 9 2. What is ‘third-party funding’? 14 3. The growth of the third-party funding market 18 4. Moral and ethical considerations 23 5. Conclusion 27 II. Types of litigation funding options available 33 Matthew Amey TheJudge 1. Introduction 33 2. Insurance 34 3. Monetisation 38 4. Broker role 39 III. Pre-funding considerations 43 Harshiv Thakerar Asertis 1. Analysis of risk 43 2. The funding agreement 48 3. Conclusion 50 IV. Regulation of the funding market 51 Matthew Lo Tom Steindler Exton Advisors 1. Introduction 51 2. Background 53 3. Self-regulation 53 4. Judicial oversight 54 5. Arbitration 55 6. Solicitors’ professional and ethical obligations 56 7. Contingency fee arrangements 56 8. PACCAR: LFAs as DBAs 57 9. Litigation risk insurance 58 V. Legal barriers to funding 61 Moeiz Farhan Vasanti Selvaratnam KC 36 Stone 1. Introduction 61 2. Historic background: maintenance and champerty 61 3. The current position 63 4. The international perspective 70 VI. Disclosure of information 73 Ewelina Kajkowska Hogan Lovells International LLP David J Kerstein Arcadia Finance LLC Nicole Silver Ignite Specialty Risk 1. Confidentiality and privilege 73 2. Conflicts of interest 76 3. Disclosure of funding arrangements to other parties 78 VII. Costs and security for costs 83 Steven Friel Woodsford 1. Introduction 83 2. Adverse costs in arbitration: institutional rules 85 3. Funder’s liability for costs 86 4. Security for costs in litigation that follows on from arbitration 88 5. Security for costs in investor-state arbitration 88 6. One party’s liability for another party’s funding costs 92 VIII.The role of funders during arbitration proceedings 95 Hasan Tahsin Azizagaoglu Ayse Yazir Bench Walk Advisors Nishant Nath Singh Stewarts 1. Introduction 95 2. Legal services providers versus financial services providers 96 3. Contemplating funding prior to or at the start of the proceedings 97 4. During the course of the proceedings 98 5. Conclusion of the proceedings 100 IX. Funding and enforcement 103 Craig Arnott Michael Redman Mick Smith Burford Capital 1. Introduction 103 2. Issues for award enforcement in commercial arbitration 105 3. Issues for award enforcement in investor-state arbitration 106 4. Asset recovery and funded award enforcement 109 5. Assignment of arbitral awards 110 6. Conclusion 113 X. Avoiding and managing disputes with funders 115 Julian Chamberlayne Stewarts 1. Introduction 115 2. Identifying and selecting a suitable funder 115 3. Negotiating heads of terms and the funding agreement 119 4. Managing the relationship between claimant and funder 121 5. Managing the budget and dealing with budget variations/overage 123 6. Settlement dynamics in funded cases 124 7. Disputes relating to funded cases 125 About the authors 129 About Globe Law and Business 139

This book is intended to ‘demystify’ the funding of international arbitration. It contains practical guidance from specialist practitioners and funders. The authors provide an insight into funding options, market regulations, legal barriers to funding, disclosure of information, costs management, the role of funders, enforcement mechanisms and dispute avoidance strategies. This is an extremely practical and accessible introduction for newcomers to this specialised area of the law.