The Research On Third-party Funding In Arbitration

Third Party Funding(TPF),also know as third party financing,is often regarded as the payment of part of all of the cost of arbitration,including but not limited to attorney fee,arbitrator fee,management fee,expert fee and other costs that are possibly emerged in arbitration,for one party(usually,the Claimant)by a third party funder institution in disputes.If the funded party's claim is supported by the final award,the funder may acquire part of the funded party's economic benefits according to the funding agreement;if the claim is not supported,the funder may lose its investment.This arrangement can relieve the fund pressure of the party and reduce the cost in dispute resolution.It is also seen as the newly established financing method in arbitration.Except for Introduction and Conclusion,this article can be divided into four Chapters.Chapter One introduces the basic knowledge of TPF and clarifies its definition,scope,type and limits the scope of third party funding in this article.This chapter also introduces the start of TPF in Australia and its development in the UK.Chapter Two focuses on the impact of TPF on arbitration.It begins with the general procedure for starting a TPF,including case evaluation,funding decision and singing TPF agreement with the funded party.It follows with the problems brought by TPF in arbitration,including the conflict of interest of arbitrators,allocation of cost and security for cost issues.Chapter Three analyzes issues of Chapter Two and concludes that the TPF arrangement shall be disclosed.Meanwhile,when the arbitral tribunal is deciding cost allocation or security for cost,TPF shall be taken into consideration.Chapter Four analyzes the vision of TPF in China and makes relevant suggestions.It begins with the development conditions of TPF and discusses with the development of arbitration in China.In the end,suggestions are made for the development of TPF in China.