Study On Third Party Funding Arbitration

The rising cost of international arbitration has caused heavy financial burden to the litigants,which has blocked the redress function of arbitration as a substitute mechanism of dispute resolution.Third party funding arbitration provides a useful way to solve the cost problem:through which the cost and risk of arbitration could be transferred from the litigants to the funders who were unrelated to the dispute,but on the other hand,challenges rising from third party funding should not be ignored.Nowadays,more and more jurisdictions have eliminated the legislative obstacles to develop third party funding arbitration.How to prevent the risks resulted from the third party funding through appropriate regulatory measures and play a positive role in arbitration has become the focus of discussion.The first aim of this article is to introduce the basic theory system of third party funding arbitration including of the intension and extension,the operation mechanism,the characteristics and the nature of third party funding arbitration.Secondly,a neutral assessment of advantages and disadvantages of third party funding arbitration will be given in order to discuss the potential function and risk of third party funding arbitration.Lost but not least,this article aims to expound the necessity and possibility of developing third party funding arbitration in China with the two-way analysis of developing conditions of third party funding arbitration and Chinese arbitration environment.The first chapter introduces the concept,characteristics,nature and operation mechanism of third party funding arbitration and its difference from the traditional arbitration cost transfer mode.The second chapter combs the history and present situation of development of third party funding in the two legal systems and summarizes the development rule and trend of the third party funding arbitration.The third chapter expounds the functions of third party funding arbitration in providing arbitration relief for poor litigants,transferring the cost and risk of arbitration,balancing the strength of both parties and promoting the access to justice.The fourth chapter analyzes the impact and challenges resulted from third party funding arbitration,and puts forward some suggestions on the basis of relevant international practice.The fifth chapter discusses the necessity and possibility of the developing third party funding arbitration in China with the arbitration circumstances of China,and puts forward suggestions for path selection and regulatory measures.