Can third party funding in arbitration diminish the menace of the unfunded claimant, asks James Clanchy
When I was registrar of the London Court of International Arbitration (LCIA), one of the challenges I had to deal with from time to time was the behaviour of the frustrated claimant unable to pay for the continuation of an arbitration which it had commenced.
I remember a general counsel who bombarded me with e-mails alleging that I had violated his human rights. He threatened to denounce me to Interpol. This was his reaction to a decision reached by the arbitral tribunal and the LCIA that his company’s claim should be treated as withdrawn for failure to pay a deposit. The decision had been made, in accordance with the LCIA Arbitration Rules, after much deliberation and patience (too much patience in the respondent’s clearly expressed view).
Mutual funding: an old solution to an old problem
Arbitration is an expensive business. It can be difficult for parties involved in international commerce to budget for disputes which might arise during the
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