A Quantum Expert’s Perspective on Third-Party Funding

Abstract

Third-party funding (TPF) has expanded significantly in recent years, and in the process, it has generated considerable controversy, particularly as it has been used in the context of investor-state dispute settlement (ISDS). This chapter briefly outlines the policy debate. Those who support the use of TPF generally frame that debate as one of access to justice. Under this view, TPF enables claimants who have good claims, but little money, to finance the cost of bringing that claim to an arbitral venue. Detractors argue that TPF shifts the historic focus of the case from the client’s interest to the funder’s interest, making return on investment the key metric for bringing such claims. The ICCA—Queen Mary Task Force on Third-Party Funding has begun the process of identifying and assessing these competing interests, and it has suggested a number of best practices based on its work. Undoubtedly, the ground rules for TPF will be subject to change as the market gains more experience with it. In the meantime, this chapter offers some pragmatic suggestions that may be helpful to parties in implementing TPF in the resolution of disputes.