The purpose of this paper will be to analyze the Third Party Funding, from both a practical and multidisciplinary perspective. This financing method for litigation and arbitration disputes, broadly acknowledged and well established in several countries in our legal environment, is still almost unknown in Spain, although it seems to be a matter of time that it also ends up being implemented, to a greater or lesser extent, in our country.
Among other issues of concern, the origins, history and current implementation of the Third Party Funding will be addressed, in a comparative analysis with other similar institutions, and with a focus on the practical problems arising from it, without disregarding the latest major legislative and case law attempts to regulate this phenomenon.
Finally, and based on Baker & McKenzie’s extensive experience in jurisdictions where the Third Party Funding has been traditionally used, a number of practical recommendations will be included, addressed to those litigants who either resort to, or are exposed to, this type of procedural facilitation, which may become an effective tool for Spanish companies in the short and medium term, specially in the international arbitration arena.