Funding International Arbitration

• Introduction 7Sherina PetitStewartsNosherwan VakilThe 36 GroupI. The growth of the funding market in the UK and beyond 9Stavros BrekoulakisNational University of Singapore; 3 Verulam BuildingsJulian DM Lew KCTwenty Essex; Queen Mary University of LondonSimona ValkovaIndependent tribunal secretary1. History and development of third-party funding 92. What is ‘third-party funding’? 143. The growth of the third-party funding market 184. Moral and ethical considerations 235. Conclusion 27II. Types of litigation funding options available 33Matthew AmeyTheJudge1. Introduction 332. Insurance 343. Monetisation 384. Broker role 39III. Pre-funding considerations 43Harshiv ThakerarAsertis1. Analysis of risk 432. The funding agreement 483. Conclusion 50IV. Regulation of the funding market 51Matthew LoTom SteindlerExton Advisors1. Introduction 512. Background 533. Self-regulation 534. Judicial oversight 545. Arbitration 556. Solicitors’ professional and ethical obligations 567. Contingency fee arrangements 568. PACCAR: LFAs as DBAs 579. Litigation risk insurance 58V. Legal barriers to funding 61Moeiz FarhanVasanti Selvaratnam KC36 Stone1. Introduction 612. Historic background: maintenance and champerty 613. The current position 634. The international perspective 70VI. Disclosure of information 73Ewelina KajkowskaHogan Lovells International LLPDavid J KersteinArcadia Finance LLCNicole SilverIgnite Specialty Risk1. Confidentiality and privilege 732. Conflicts of interest 763. Disclosure of funding arrangements to other parties 78VII. Costs and security for costs 83Steven FrielWoodsford1. Introduction 832. Adverse costs in arbitration: institutional rules 853. Funder’s liability for costs 864. Security for costs in litigation that follows on from arbitration 885. Security for costs in investor-state arbitration 886. One party’s liability for another party’s funding costs 92VIII.The role of funders during arbitration proceedings 95Hasan Tahsin AzizagaogluAyse YazirBench Walk AdvisorsNishant Nath SinghStewarts1. Introduction 952. Legal services providers versus financial services providers 963. Contemplating funding prior to or at the start of the proceedings 974. During the course of the proceedings 985. Conclusion of the proceedings 100IX. Funding and enforcement 103Craig ArnottMichael RedmanMick SmithBurford Capital1. Introduction 1032. Issues for award enforcement in commercial arbitration 1053. Issues for award enforcement in investor-state arbitration 1064. Asset recovery and funded award enforcement 1095. Assignment of arbitral awards 1106. Conclusion 113X. Avoiding and managing disputes with funders 115Julian ChamberlayneStewarts1. Introduction 1152. Identifying and selecting a suitable funder 1153. Negotiating heads of terms and the funding agreement 1194. Managing the relationship between claimant and funder 1215. Managing the budget and dealing with budget variations/overage 1236. Settlement dynamics in funded cases 1247. Disputes relating to funded cases 125About the authors 129About Globe Law and Business 139

This book is intended to ‘demystify’ the funding of international arbitration. It contains practical guidance from specialist practitioners and funders. The authors provide an insight into funding options, market regulations, legal barriers to funding, disclosure of information, costs management, the role of funders, enforcement mechanisms and dispute avoidance strategies. This is an extremely practical and accessible introduction for newcomers to this specialised area of the law.