{"id":126769,"date":"2021-08-17T18:23:15","date_gmt":"2021-08-17T12:53:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=126769"},"modified":"2021-08-18T09:25:07","modified_gmt":"2021-08-18T03:55:07","slug":"case-for-third-party-funding","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/case-for-third-party-funding\/","title":{"rendered":"Case for third party funding"},"content":{"rendered":"<p><strong>Source:\u00a0<a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=GIB8SQ3AB.1&amp;imageview=0\">The Hindu<\/a><\/strong><\/p>\n<p><strong>Relevance: <\/strong>To study the arbitration methods.<\/p>\n<p><strong>Synopsis: <\/strong>Third-party funding in Arbitration should be explored, with sufficient caution, to expedite access to justice.<\/p>\n<h5><strong>Third-Party Funding in Arbitration\/Litigation Funding<\/strong><\/h5>\n<ul>\n<li>It is the process in which someone who is not involved in an arbitration provides funds to a party to that arbitration in exchange for an agreed return.<\/li>\n<li>This practice is <strong>widely used in commercial arbitration<\/strong>, as this process improves access to justice by providing advance funding &amp; support for the expensive, lengthy litigation process.<\/li>\n<li>Historically, this form of funding was prohibited under doctrines of maintenance &amp; champerty<\/li>\n<\/ul>\n<p><strong>Present Scenario<\/strong><\/p>\n<ul>\n<li>Now, the rules have been relaxed in various jurisdictions including the UK, the US, Canada and Australia as more focus is on access to justice.<\/li>\n<li>In India, \u201c<strong>non-lawyer third-party funding\u201d is lawfully admissible,<\/strong> i.e. where there is no personal interest of the participating advocate.<\/li>\n<li>The practice of 3<sup>rd<\/sup> party funding must become prevalent in India as it will not only open access to the court system but also businesses to manage their litigation position in a better way.<\/li>\n<\/ul>\n<h5><strong>The debate around third party funding<\/strong><\/h5>\n<ul>\n<li>The main area of concern is the disclosure of the type of funding.<\/li>\n<li>We can learn from Hong Kong Inspirational Arbitration Centre Rules. The rules stipulate that when a funding agreement is concluded, the funded party must notify the other party. After that, the arbitral tribunal or emergency arbitrator in writing of the fact that a financing agreement has been concluded, along with the identity of 3<sup>rd<\/sup> party sponsor.<\/li>\n<\/ul>\n<h5><strong>Way forward<\/strong><\/h5>\n<ul>\n<li>We have seen organizations come up like the Indian Association for Litigation finance. So,\u00a0India should explore third-party funding, keeping in view it increases access to justice<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0The Hindu Relevance: To study the arbitration methods. Synopsis: Third-party funding in Arbitration should be explored, with sufficient caution, to expedite access to justice. Third-Party Funding in Arbitration\/Litigation Funding It is the process in which someone who is not involved in an arbitration provides funds to a party to that arbitration in exchange for an&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/case-for-third-party-funding\/\">Continue reading <span class=\"screen-reader-text\">Case for third party funding<\/span><\/a><\/p>\n","protected":false},"author":5480,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[9115,212,8831,9114],"class_list":["post-126769","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-access-to-justice","tag-gs-paper-2","tag-law-and-mechanism-for-protection-of-vulnerable-sections","tag-litigation-funding","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/126769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/5480"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=126769"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/126769\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=126769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=126769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=126769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}