Third Party Funding in Arbitration

Third party funding in the arbitration is an emerging phenomenon in the arbitration whereby a third party incurs the costs of arbitration proceedings in exchange for a share of the benefits of an arbitration Judgment that is likely to benefit the protected party. Even a party to the dispute who is in a position that can pay the arbitration costs may conclude a funding agreement with a third party in order to escape the consequences of failure in arbitration. Although the third party has a significant role in enforcing the right of the parties in access to justice, this person is not a party to the dispute and it is evident that in some cases, such as security for costs, an obligation can not be made on her. In addition to the need to disclose a third-party identity by the protected party to the arbitration tribunal, the arbitrator is required to disclose any relationship with this person.