Case for third party funding
3 years, 4 months ago

Case for third party funding

The Hindu  

Third party funding in arbitration, or litigation funding, is a concept where an unrelated party to a dispute finances the legal cost of one of the parties. Litigation risks The practice of third party funding is widely prevalent in Europe and the U.S., and must become prevalent in India. This is not only because third party funding plays an instrumental role in opening access to the court system but also helps businesses manage their litigation risks in a better manner. We can take inspiration from the Hong Kong International Arbitration Centre’s rules, the proposed changes in the International Bar Association rules and other such organisations, which stipulate that when a funding agreement is concluded, the funded party must notify the other party, the arbitral tribunal or emergency arbitrator in writing of the fact that a financing agreement has been concluded, along with the identity of the third party sponsor. Third party funding can definitely improve access to justice, but we must also ensure that scenarios like the ones that arose during the medieval period do not come up.

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History of this topic

Ministry Of Finance Pushes For Mediation Over Arbitration In Domestic Public Procurement Contracts
6 months, 2 weeks ago

Ministry Of Finance Pushes For Mediation Over Arbitration In Domestic Public Procurement Contracts

Live Law  

The Department of Expenditure under the Ministry of Finance, Government of India, has recently released guidelines delineating the use of arbitration and mediation in domestic public procurement contracts. Further, it states that government departments/ entities/ agencies should adopt mediation under the Mediation Act, 2023 and/ or negotiate amicable settlements for resolution of disputes. “recent developments, namely the enactment of the …

Does Third-Party Funding Have Potential to Alter Arbitration Landscape of India?
1 year, 6 months ago

Does Third-Party Funding Have Potential to Alter Arbitration Landscape of India?

The Quint  

However, such permission is naturally subject to careful scrutiny and may be withdrawn in case any such agreement towards providing third-party funding is found to be unconscionable, inequitable, extortionate, unrighteous, injurious or contrary to public policy. While those terms may seem broad and somewhat vague, the stance of Indian courts to not outrightly reject the idea but instead scrutinise it …

Third Party Funders In Arbitration Play A Vital Role In Ensuring Access To Justice; Arbitral Award Cannot Be Enforced Against Them: Delhi High Court
1 year, 6 months ago

Third Party Funders In Arbitration Play A Vital Role In Ensuring Access To Justice; Arbitral Award Cannot Be Enforced Against Them: Delhi High Court

Live Law  

The Delhi High Court has ruled that a third-party funder, i.e., a non-signatory to arbitration agreement, who is not a party to the arbitral proceedings or the award, cannot be held liable for the awarded amount merely because it has funded a party in arbitral proceedings. The court disagreed with the view of the Single Judge that the appellant, Tomorrow …

Lawyers And Law-Firms Are Facing Severe Financial Crunch Because Of The COVID-19 Pandemic; Third-Party Litigation Funding Is A Solution
3 years, 6 months ago

Lawyers And Law-Firms Are Facing Severe Financial Crunch Because Of The COVID-19 Pandemic; Third-Party Litigation Funding Is A Solution

Live Law  

The waves of Covid19 pandemic and recession triggered by such waves are hitting the industries hard, and companies are bracing for furloughs, layoffs, hiring freezes, and other adverse economic impacts. Businesses have started exploring the available options to offload the legal risk through Third-Party Litigation Funding or interim financing. In addition, the third-party funder receives a certain fixed payout or …

Litigation Funding
4 years ago

Litigation Funding

Live Law  

Litigation Funding, commonly referred to as Third-Party Funding, refers to the process of covering a party's litigation expenses by a funder in return, for a share in the litigation's monetary award. Sharing in the monetary gains of a successful legal claim in exchange for funding the costs of the litigation, is viewed as a low-investment and high-return arrangement by the …

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