As third-party funding becomes increasingly mainstream, this article highlights the importance of considering both funding and insurance when looking for a cost-effective way to manage legal spend
There has been a lot of hype about the increased use of third-party funding by companies keen to manage the rising cost of arbitration. Funders are attracted to the arbitration arena by the high-value claims, perceived finality of awards and the enforcement regime provided by the New York Convention. In return, the arbitration community has shown its support by adopting it as a common cost tool encouraged, perhaps, by jurisdictions such as Singapore and Hong Kong lifting their prohibition of its use in arbitrations.
