Document Type : Research Paper
Authors
1 Department of Law, Zanjan Branch, Islamic Azad University, Zanjan, Iran
2 Assistant Professor, International Law, of Islamic Azad University of Zanjan, Zanjan, Iran
3 Associate Professor, Public International Law, Allameh Tabataba'i University, Tehran, Iran
Abstract
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.
Keywords
الف- فارسی
کتاب‌ها
- شهیدی، مهدی، تشکیل قراردادها و تعهدات، چاپ ششم (تهران: مجمع علمی و فرهنگی مجد، 1386).
- شیروی، عبدالحسین، حقوق قراردادها، انعقاد، آثار و انحلال (تهران: سمت، 1396).
- صفایی، سید حسین، دوره مقدماتی حقوق مدنی (قواعد عمومی قراردادها)، جلد دوم (تهران: بنیاد حقوقی میزان، 1389).
- کاتوزیان، ناصر، حقوق مدنی (معاملات معوض- عقود تملیکی: بیع، معاوضه، اجاره، قرض) (تهران: شرکت سهامی انتشار با همکاری بهمن برنا، 1376).
ب- انگلیسی
Books
- Affaki, G, A financing is a Financing is a Financing…, Dossier X: Third-Party Funding in International Arbitration (Paris: ICC Publishing S.A., 2013).
- Bogart, C, Overview of Arbitration Finance (Paris: ICC Publishing S.A, 2013).
- Cremades, B, Concluding Remarks, In B. Cremades and A. Dimolitsa (eds.), Dossier X: Third-Party Funding in International Arbitration (Paris: ICC Publishing S.A., 2013).
- Fouchard, Philippe et al., Fouchard, Gaillard, Goldman on international commercial arbitration (The Hague: Boston, [Mass.]. Kluwer Law International, 1999).
- Hellbeck, Lamma, E, Third-Party Funding in Investor-State Arbitration (Paris: ICC Publishing S.A, 2013).
- Lew, Julian D; Mistelis, Loukas; Kröll, Stefan, Comparative International Commercial Arbitration (New York: The Hague, Kluwer Law International, 2003).
- Nieuwveld, Lisa Bench & Victoria Shannon Sahani, Third-Party Funding in International Arbitration, Second Edition (The Netherland, Wolters Kluwer, 2017).
- M. Kantor, Risk Management Tools for Respondents – Here be Dragons in B. Cremades & A. Dimolitsa (eds.), Dossier X: Third-party Funding in International Arbitration (Paris: ICC Publishing S.A., 2013)
- Rogres, Caterine, Gamblers, Loan Sharks and Third-Party Funders, Ethics in International Arbitration (Oxford University Press, 2014).
- Seidel, S and S. Sherman, Corporate Governance Rules are Coming to Third Party Financing of International Arbitration (Paris: ICC Publishing S.A, 2013).
- Smith, D, Shifting Sands: Cost-and Fee Allocation in International Arbitration (Paris: ICC Publishing S.A, 2013).
- Von Goeler, Jonas, “Third-party Funding in International Arbitration and its Impact on Procedure, 2016).
Articles
- Christophe De Backere & De Lathauwer, Nino, “Contingent Fees: Beyond the Intuitive Threat”, Jura Falconis JQ, Vol. 49, (2013).
- Choi, Maria. Third-Party Funders in International Arbitration: A Case for Protecting Communication Made in Order to Finance Arbitration, Hein Online [online], (2018(, p.887, https:// heinonline. org/ content/databases.
- Cain, Terrence, “Third Party Funding of Personal Injury Tort Claims: Keep the Baby and Change the Bathwater”, Chicago - Kent Law Review, Vol. 89. No. 11, (2014).
- Collin R Flak, “Third Party Funding in Domestic Arbitration: Champers or Social Utility”? Dispute Resolution Journal, Vol. 70, No. 2, (2015).
- De Backere, Christophe, & Nino, De Lathauwer, “Contingent Fees: Beyond the Intuitive Threat”, JURA Falconis JQ, Vol. 49, (2013).
- Daele, Karel, “Challenge and Disqualification of Arbitration in International Arbitration”, Kluwer Law International, Volume. 29, Issue 1, (2013).
- De Morpurgo, Marco, “A Comparative Land Economic Approach to Third Party Litigation Funding: Cardozo Journal of International & Comparative Law, Vol. 19, (2011).
- Dos Santos, Caroline, “Third-Party Funding in International Commercial Arbitration: AWOL in Sheep’s Clothing?”, As A Bulletin, Vol .35, No. 4, (2017).
- Ventures Excalibur llc v. Texas keystone Inc. & ors, English High Court, Folio 1517, (2013).
- Franck, S.D. “Rationalizing Costs in Investment Treaty Arbitration”, “Vol. 88, No. 4, (2011).
- Goldestein, Marco.j, “Should the Real Parties in Interest Have to stand up? Thoughts about a Disclosure Regime”, Dispute Resolution Journal, Vol. 63, Iss. 3, (2008).
- Gonzáles-bueno, Carlos, Third-Party Funding Again under the Spotlight. Kluwer Law International, A Wolters Kluwer Company, part 1, (2014).
- Hoa, Lim Lie and ONG, Another v. Jane Rebecca (1997) .
- Jackson, Lord Justice, “Review of Civil Litigation Cost: Final Report”, The Stationery Office (T.S.O), (United Kingdom, ISBN 9780117064041) (2007-01-14. Retrieved 2010-05-01. 2010).
- Jasminka Kalajdzic, Peter Cashman & Alana M, Longmoore, “Justice for Profit: A Comparative Analysis of Australian, Canadian and U.S. Third Party Litigation Funding”, The American Journal of Comparative Law, Vol. 61, (2013).
- Kalajdzic Jasminka, Peter, & Cashman, Alana M, Longmoore, “Justice for Profit: a Comparative Analysis of Australian, Canadian and U.S. Third Party litigation Funding”, The American Journal of Comparative Law, Vol. 61, 2013.
- Osmanoglu, Burcu, “Third-Party Funding in International Commercial Arbitration and Arbitrator Conflict of Interest”, Journal of International Arbitration, Volume 32, (2015).
- Rancman V., (2003).
- Sahlman, William the Structure and Governance of Venture- Organization Journal of Financial Economics, 1990.
- Scherer, Maxi,. M, Scherer, “Third Party Funding of International Arbitration Proceedings – A View from Europe: Part 1 – Funders’ Perspectives”, International Business Law Journal, Vol. 1, (2012).
- H. Kritzer, Risks, Reputations and Rewards: Contingency, Fee Legal Practice in the United States, Stanford University Press, (2004).
- Shahdadpuri, H. Khushboo, “Third-Party Funding in International Arbitration: Regulating the Treacherous Trajectory”, Asian International Arbitration Journal, Volume 12, Issue 2, (2016).
- Steinizt, Maya, “Whose Claim is this Anyway? Third-party Litigation Funding”, Minnesota Law Review, Vol. 95, No. 4, (2011).
Scherer, m. M, Scherer, “Third Party Funding of International Arbitration Proceedings – A View from Europe: Part 1 – Funders’ Perspectives”, International Business Law Journal, Vol. 1, (2012).
- Trusz, Gennifer A, “Full Disclosure? Conflicts of Interest Arising from Third-Party Funding in International Commercial Arbitration”, The Georgetown Law Journal, Vol. 6, (2013).
- Van Boom. Willem H, “Third Party Financing in International Investment Arbitration”, The Research Paper Financed by Qecd, Erasmus School of Law, Rotterdam, The Netherlands, (2011).
Websites
- Arkin v Borchard Lines Ltd & Ors, Court of Appeal, decision (2005), Case No 0309 and [online]. Availableat: http://www.bailii.org/ew/cases/EWCA/Civ/2005/655.html.
- Fostif case, see U.S. Chamber Institute for Legal Reform, Third Party Financing: Ethical & Legal Ramifications in Collective Actions, (2009), and www. Institute for Legalre form. com/ images/ stories /documents/ pdf/ research/ thirdpartyfinancingeurope.pdf.
- Derains, Yves. Foreword. library.iccwbo.org [online]. ICC Digital library, (2013)].
- The Fostif Case See: http://www.instituteforlegalreform. Com / Documents/Third Party Financing Europe PDF.
- Maniruzzaman, Monir. “Third-party Funding in International Arbitration”, Kluwer Arbitration Blog, (2012), http://kluwerarbitrationblog.com/blog/2012/12/29/third-party-funding-ininternational-arbitration-a-menace-or-panacea.
- Mohtashami, Reza. “Arbitration News: Newsletter of the International Bar Association Legal Practice Division”, (2014), www.mwe.com/files/Publication/33a21191-bf0f-418e-a862.
- L. Nieuwveld and V. Shannon Third-Party Funding in International Arbitration, Alphen aan den Rijn, Kluwer Law International, 9; S. Seidel, “Control” in Third-Party Funding: A Doctrine Out of Control”, http:// fulbrook management.com/wp-content/uploads, ( 2012).
- STEINITZ, Maya. “Who’s Claim Is This Anyway?” Third-Party Litigation Funding, HeinOnline [online].( 2011). P. 1268-1338. Available at: https://home.heinonline.org/content/databases/
-The Law Reform Commission of Hong Kong, “Third Party Funding for Arbitration SUB-Committee”, Consolation Paper, available at http://WWW.hkreform.gov.hk.
Thesis
- William M. Sage, “Managed Care's Crimea: Medical Necessity, Therapeutic Benefit, and the Goals of Administrative Process in Health Insurance”, DukeLaw Journal, 53, (2003), pp. 597-601, Available at: https://scholarship.law.duke.edu/dlj/vol53/iss2/8.
- Lawerence, Lyn, Regulating Third Party Funding in Arbitration Held within South Africa, Master Thesis, University of the Western Cape, (2018).
)