Third-party
funding has been a much debated topic between arbitration practitioners for the
last ten years. Much has been written, explored and discussed in articles,
seminars and others regarding the nature and the role of this newcomer that is
the third-party funder. The purpose of this article (published while this
practice, which originated in Australia and Romano-Germanic countries, has now taken
its first steps in France) adopts a deliberately pragmatic approach. This study
is intended for the use of arbitrators, lawyers or parties who consider having
arbitration proceedings funded by a third-party funder. Its aim is to provide
guidance on the main issues arising from the third party’s intervention from
its preliminary steps, in order to assess the positive and negative aspects
from both a contractual and a procedural perspective. This article aims at explaining
how to manage the contractual relationship between the party and the
third-party funder and how to understand and manage the consequences of the
involvement of the third-party funder in the proceedings, in particular towards
the arbitral tribunal and the opposing party. This article intends to
highlight, in the form of a vade-mecum or by « Questions & Answers », the
essential issues that arise in practice from third-party funding and to suggest
appropriate answers to those who are considering (or even already negotiating) third-party
funding in arbitration. Before considering these two aspects, a brief overview
of the practice will be exposed.