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

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 investment arbitration, the latest studies suggest that a large percentage of investment arbitration 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 investme nt 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 procedural 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.

Inhaltsverzeichnis:

1 The new phenomenon in investment arbitration.- 2 Definition, history and basic mechanism of tpf.- 3 Existing and potential procedural problems in tpf in investment arbitration: analysis of the case law.- 4 Empirical research in the TPF market.- 5 Third-party funding: threat or facilitator of the system - an ethical dilemma.- 6 Conclusion.- 7 The best practice guideline for funders operating in investment arbitration.- Appendix - investment arbitration cases.

Rezension:

"The book masterfully achieves its focused objectives in analyzing TPF. ... Eken's work represents a major advance in our understanding of TPF in investment arbitration. By combining rigorous empirical research with thoughtful analysis of procedural and ethical issues, it provides an essential resource for practitioners, scholars, and policy makers. The inclusion of practical guidelines based on comprehensive research makes this book valuable for those seeking to understand or engage with this increasingly important aspect of international dispute resolution." (Tsai-fang Chen, Contemporary Asia Arbitration Journal, Vol. 17 (2), November, 2024)