PhD defence Y. (Yihua) Chen

Dissertation in short:

Third-party funding is a means of dispute financing in which ‘a non-disputing party provides funds or other material support to the disputing party to cover arbitration-related costs in exchange for reimbursement or remuneration that is wholly or partially dependent on the outcome of the arbitration’. The role of third-party funding in facilitating access to justice and sharing the risk of disputing parties has attracted increased attention during the COVID-19 pandemic. 

This dissertation focuses on the ethical implications of third-party funders for the professional conduct of arbitrators and lawyers advising or representing clients seeking or having obtained third-party funding in international arbitration. These implications are specifically related to three areas: (a) in relation to the arbitrator’s independence and impartiality; (b) in relation to the lawyer’s independence and professional duties towards the funded client, the arbitral tribunal and the integrity of the legal profession; and (c) in relation to the lawyer’s duty of confidentiality towards the funded client and legal privilege. In this regard, this research examines and answers whether the existing international arbitration system can sufficiently address the main ethical issues arising from third-party funding and the closely related procedural legal issues in international arbitration. In addition, this research discusses the regulation of third-party funding of international arbitration to complement the existing international arbitration system to address the ethical issues mentioned above.