Private Law Theory

ABSTRACT
The argument regarding the treatment of financial support by third parties in international arbitration has escort to a discussion of several benefits and risks offered by the concept of third-party funding. On the other hand, different countries’ economic and legislative approaches are also crucial to flourish this concept of third-party funding. Several investors, banks, and companies are now investing their funds in this emerging market of arbitration. Nevertheless, some critics claim that as the third-party funding concept in the arbitration is like champerty; therefore, it is illegal and inconsistent with public policy. Contentions from the critics create a further discussion of whether the third-party funding agreements will be considered as a champertous agreement or not, in accordance with the contract law of this south Asian region. However, the proponents of the theory of third-party funding argued that this concept is utterly consistent with public policy, and champerty has now become an archaic doctrine of law. The discussion of this short paper has shed some light on the debate between the doctrine of champerty and the concept of third-party funding in the arbitration process.

Bin Siddique, Fahad, Champerty vs Third-Party Funding in Arbitration: A Censorious Debate (September 2020). SCLS Law Review, volume 3, issue 3, 2020.

First posted 2020-12-02 12:42:30