Third-Party Funding in Investment Arbitration: A New Player in the System

Eken, Can

Abstract

This book offers a reference guide that can be consulted by all users of Third-Party Funding (TPF), lawyers, students, and other interested readers. In addition to analyzing TPF issues holistically, with both doctrinal and empirical methods, the book provides important empirical data on funders through interviews conducted with nearly thirty people working for third-party funders. It reveals a range of potential problems and lays out how to address them in the form of guidelines.

TPF has become a significant element of litigation and arbitration systems around the world for both theoretical and practical reasons. Specifically, in the context of invest- ment arbitration, the latest studies suggest that a large percentage of investment arbitra- tion cases are sponsored by funders. Despite its prevalence, TPF has raised procedural and ethical concerns in the investment regime. One of the caveats is that when states lose against an investor, their taxpayers are who pay for the investment arbitration award, essentially transferring the wealth of the states to the investor, and now part of this wealth goes to the funder. Whether or not the funder shares this wealth is anyone’s guess and represents an ethical consideration.

Apart from ethical challenges, TPF has also raised significant procedural problems in investment arbitration. As funders enter the equation of arbitration proceedings in the investment regime, consideration must be given to this new player and how TPF affects investment arbitration.
Overall, the book assesses TPF in its entirety: background information, the main pro- cedural issues and case law, ethical aspects, and empirical research on TPF, including the funder’s perspective. By doing so, it sheds new light on under-researched issues and offers essential guidance to help orient legal policy.

Citation

Eken, C. (in press). Third-Party Funding in Investment Arbitration: A New Player in the System. Springer Nature

• Book Type: Authored Book
• Deposit Date: Jun 17, 2024
• Publisher: Springer Nature
• Series Title: Law for Professionals
• Series ISSN: 2662-141X
• Edition: 1st ed.
• ISBN: 9783031636196
• Keywords: third-party funding; international arbitration; investment arbitration
• Public URL: https://durham-repository.worktribe.com/output/2485136
• Publisher URL: https://link.springer.com/book/9783031636196
• Contract Date: May 13, 2024