Third-Party Financing in Investment Arbitration

Document Type

Book Chapter

Publication Date

4-2018

Editor(s)

Christina L. Beharry

Language

en-US

Abstract

This Chapter identifies and explains the effect of third-party funding on the financial aspects of international investment treaty cases. Indeed, the increased visibility of third-party funding coupled with the increasingly novel and complex ways that these arrangements are carried out make it a fascinating development in the world of disputes.

Third-party funding is particularly relevant in the context of damages because, ultimately, the magnitude of damages of any claim is one of the determining factors influencing whether a claim will be financed and, if so, at what level.

This Chapter explores the different types of third-party funding, how it is obtained, the current state of regulation, the scope of disclosure obligations, the treatment of third-party funding by international investment tribunals, the impact of funding on security for costs applications and quantum calculations, and the influence of third-party funding on settlements

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