فهرست مطالب seyed sadegh ebrahimi

Arbitration for international investment comes at a high cost to both the investor and the government in question. One of the new phenomena in international investment arbitration is the financing of litigation by a third party investor. This investor is not interested in the issue of arbitration, but enters it with the hope that it will be profitable from resolving the dispute. International arbitrators have, in principle, no jurisdiction to review a third-party investment agreement because their jurisdiction is limited to litigation between the foreign investor and the host government. The investment agreement, therefore, has nothing to do with the legal relationship between the foreign investor and the host government. It will also point out that the existence of an investment agreement is subject to transparency rules to ensure that the principle of equality is respected, and that a third-party investment investor is an investor in financial claims and claims that acts before a court or arbitral tribunal. With the participation of a third party investment investor, the plaintiff (claimant) may use the necessary resources and intervene in the litigation or arbitration. Instead, the third-party investor is promised a portion of the profits if the lawsuit is successful. If the lawsuit is unsuccessful, the third-party investment investor will bear the costs of participating in the lawsuit or arbitration instead of the plaintiff.

International commercial arbitration imposes heavy costs to the parties involved. In this regard, one of the new phenomena in international commercial arbitration is "financing of court costs by a third party investor. There are several reasons for the emergence of a third party investor: 1- involved parties may not have the resources to pay for the costs of arbitration or they may be reluctant to use their funds to finance the litigation: 2. the uncertainty of receiving compensation as a result of paying the arbitration fees might encourage the parties to transfer this risk to a third party; 3. having its own advantages and disadvantages. Since the funder holds the power of the purse, TPF entails the risk of the control of the claim being transferred to the third party funder. We might ask whether international arbitration tribunals should examine the extent of the investor's influence in determining the allocation of costs or not. In addition, is it essential to disclose the third parties contracts confidential? Overall, it is concluded that those mentioned Tribunals should allocate and guarantee the arbitration cost and agree on disclosing of third parties fund contracts under urgent conditions by international arbitration tribunal.