“Just a few years ago third-party funding was little known — and in many jurisdictions forbidden. However, recent legislative and judicial decisions permitting and in some instances encouraging the use of this litigation finance tool have led to a meteoric rise in the number of cases being funded, giving rise to a constantly evolving landscape of financing products and entities that offer them.”
In an article for Mealey’s International Arbitration Report, Goldberg Segalla associate Oliver E. Twaddell examines the recent rise of third-party funding in international arbitration, changing perceptions toward the same, and shifts in international legislation. They also offer their predictions for the future.
“The debate over whether litigation funding should be permitted is a thing of the past,” they write. “The more salient issue that the international arbitration community faces is not if, but how, it should embrace this litigation tool that many clients now consider crucial to the profitability and longevity of their businesses.”