Recent years have seen an upsurge in the number of third-party funded cases and the number of reported cases involving issues relating to third-party funding in international arbitrations. The existence of third-party funding in international arbitration can create potential arbitrator conflict of interest. A number of factors contribute to the concern about arbitrator conflict of interest: arbitrators may take ad hoc consultancy positions with some third-party funders (TPF), the symbiotic relationship between TPF and a small group of law firms, the relationship between law firms and some arbitrators, and the general calls for transparency.
As a result of the increased concern, third-party funding has increasingly drawn the attention of arbitral institutions and national legislatures. Many arbitral … Read the rest