The impacts of third-party funding on cost decisions in investment arbitration

被引:0
|
作者
Islam, M. D. Khairul [1 ]
机构
[1] Univ Ottawa, Ottawa, ON, Canada
关键词
Third-party funding; investment arbitration; security for costs; cost award; funding fee;
D O I
10.1080/10192557.2023.2232617
中图分类号
D9 [法律]; DF [法律];
学科分类号
0301 ;
摘要
The involvement of Third-party Funding (TPF) in investment arbitration disrupts the balance between the parties to an arbitration. Though a party's reliance on external funding represents its impecuniousness to participate in an arbitration, many financially sound investors take TPF to reduce the risk associated with bringing a claim or are unwilling to stick their working capital in arbitration. The existence of TPF in arbitration is a material factor in deciding an order for security for arbitration costs. The third-party funder funds an investor to initiate arbitration and gets benefits from a cost award. However, the funder does not share an investor's responsibility to pay an adverse cost. The funder's immunity from adverse costs aggravates the demand for security for costs in a funded arbitration. While a claimant's reliance on TPF is considered a material factor in issuing an order for security for its cost, this consideration, counter-wise, legitimizes the cost of funding as arbitration costs. Accordingly, the funding cost can be recoverable through an adverse cost award. The TPF consideration in an order for security for costs makes the funding arrangement a part of the arbitration proceedings. If the funding position of a party is considered in deciding an application for security for costs, it deserves equal consideration in awarding adverse arbitration costs. Establishing the funding cost as arbitration costs will increase the cost of the international arbitration and unjustly transfer public money to private entities.
引用
收藏
页码:259 / 278
页数:20
相关论文
共 50 条
  • [41] Impacts of third-party payment in an open economy
    Chen, Chiou-Wen
    AUSTRALIAN ECONOMIC PAPERS, 2020, 59 (01) : 34 - 42
  • [42] Investment responses to third-party market facilitation in Armenia
    Shanoyan, Aleksan
    Ross, R. Brent
    Gow, Hamish R.
    Peterson, H. Christopher
    JOURNAL OF AGRIBUSINESS IN DEVELOPING AND EMERGING ECONOMIES, 2014, 4 (02) : 98 - 114
  • [43] The effects of media reputation on third-party funding of Swiss universities
    Vogler, Daniel
    JOURNAL OF COMMUNICATION MANAGEMENT, 2020, 24 (03) : 285 - 298
  • [44] Getting more third-party participants on board: Optimal pricing and investment decisions in competitive platform ecosystems
    Zhu, Weijun
    Xie, Jiaping
    Xia, Yu
    Wei, Lihong
    Liang, Ling
    EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 2023, 307 (01) : 177 - 192
  • [45] To litigate or not to litigate? The impacts of third-party financing on litigation
    Deffains, Bruno
    Desrieux, Claudine
    INTERNATIONAL REVIEW OF LAW AND ECONOMICS, 2015, 43 : 178 - 189
  • [46] Secure Data Aggregation Scheme in Smart Grid with Third-Party Arbitration
    Ding Y.
    Wang B.-Y.
    Yuan F.
    Wang Y.-J.
    Zhang K.
    Tian L.
    Tien Tzu Hsueh Pao/Acta Electronica Sinica, 2020, 48 (02): : 350 - 358
  • [47] Using third-party purchasing to push third-party logistics
    Long, JS
    Zhao, J
    THIRD WUHAN INTERNATIONAL CONFERENCE ON E-BUSINESS: GLOBAL BUSINESS INTERFACE, 2004, : 400 - 404
  • [48] Optimization of processing and delivery decisions involving third-party machines
    Cai, Xiaoqiang
    Lee, Chung-Yee
    Vairaktarakis, George L.
    NONLINEAR ANALYSIS-THEORY METHODS & APPLICATIONS, 2005, 63 (5-7) : E2269 - E2278
  • [49] Reverse channel selection decisions with a joint third-party recycler
    Chu, Xiang
    Zhong, Qiuyan
    Li, Xue
    INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, 2018, 56 (18) : 5969 - 5981
  • [50] Third-Party Onboarding Organizations as Gatekeepers for Student Placement Decisions
    Danielson, Jennifer
    Kraus, Courtney
    Jefferson, Curtis G.
    Cleven, Anita J.
    Rice, Luke E.
    O'Sullivan, Teresa A.
    AMERICAN JOURNAL OF PHARMACEUTICAL EDUCATION, 2018, 82 (01)