Research On The Regulation Model Of The Third-Party Funding In International Arbitration

The increasing complexity and the growing arbitration fee have resulted in heavy economic burden on parties to arbitration,which has hindered the the realization of justice.Being a new financing style,the third-party funding helps to pay the high cost and to transfer risk of arbitration,and it is worth popularizing.However,the third-party funding also led to new risks.To get the most out of the third-party funding and curb these negative effects is now the number one priority.Through an analysis of potential risks of the third-party funding,this paper will summarize the regulation models of the third-party funding.Finally,according to the analysis of the feasibility and the necessity of constructing the third-party funding system,this paper discusses the regulation model of the third-party funding for application in China.This paper is divided into three parts:In first part,this paper introduces the background and the development history of the third-party funding.Through the research,the author found the following information.With the development of economic globalization,the common law countries' attitude towards the doctrine of Maintenance and Champerty have gradually changed,and they have tended to recognize the legitimacy of third-party funding in the field of arbitration.Compared with the common law countries or regions,the civil law countries or regions had been comparatively slow in the development of third-party funding,mainly because the civil law countries or regions has low cost pressures.In addition,the slow development of third-party funding in the civil lawcountries or regions also because the different legal culture and attorney fees.This doesn't mean that there is no market for development of the third-party funding in the civil law countries or regions.With the growth of international arbitration practice,third-party funding in German,Swiss,Austria,France and other civil law countries will have great development potentialities.However,besides a huge number of advantages of third-party funding,there are still many risk factors in the processes of applying third-party funding.Based on a big amount of reference,we concluded that the third-party funding could introduce plenty of possible risks,such as confidentiality,conflict of interest,the third-party funder have too much control over the case.In second part,this paper studys the different regulation models in different countries?regions? to deal with third-party funding.Australia relys on judicial precedent,England takes self-regulation,American takes advantage of state laws and judicial precedent to regulate third-party funding.Singapore and Hong Kong combine self-regulation with legislation be on guard with risks.In third part,based on the analysis of the feasibility and the necessity of constructing the third-party funding system,this paper gives that there is no obstacle in law to introduce third-party funding in view of the fact that the present legislation and the judicial present situation in our country.And it is necessary for our country to introduce the third-party funding because it is beneficial to achieve fairness and justice.But given the potential risks,there may be some regulatory measures.China should practice the regulation pattern helpful to the development of international arbitration,according to China's concrete situation in learning the experiences from other countries: the first is to allow of the third-party funding applying to arbitration,the second is the arbitral tribunal lays down the Code of Practice to regulate specific provisions on implementation of the third-party funding under authorization,the third is to promote the healthy development of third-party funding with a combination of self-regulation and solicitor's occupational ethics.In total,third-party funding's value to arbitration is now widely recognized,but how to regulate the third-party funding is still an important and unsolved problem.Whereas there is few research about regulation pattern of third party-funding,thepaper will introduce the connotation and potential risks of the third-party funding,and how to regulate these risks.