FINANCING OF ARBITRATION BY A THIRD PARTY

Document Type : Research Paper

Authors

1 Assistant Professor, Department of International Law, Faculty of Law and Political Sciences, Allameh Tabataba'i University

2 Ph.D in Public International Law, Faculty of Law and Political Sciences, Allameh Tabataba'i University

Abstract

Financing of arbitration by a third party is an emerging phenomenon in the arbitration whereby a third party incurs the costs of arbitration proceedings in return for sharing the benefits of the arbitral award, which is likely issued in favor of the supported party. Even a party who has no problem of paying the arbitration fees may conclude an arbitration financing agreement with a third party in order to avoid the consequences of failure in arbitration. Although the third party play a significant role in enforcing the right of the parties to access to justice, this person is not a party to the dispute and it is obvious that in some cases such as obtaining security for other party's proceedings costs, no obligation can be imposed on him. In addition to the need to disclose a third-party identity on behalf of supported party for arbitration, arbitrators are required to disclose any connection to this person.

Keywords

References

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Law Quarterly
Volume 51, Issue 1
April 2021
Pages 129-143

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