Research On The Disclosure Obligation Of Third-party Funding In Arbitration

Third-party funding in arbitration means that a third party funder provides funds for part or all of the costs of arbitration proceedings of a party to a dispute.In return,third-party funder enjoy agreed financial benefits from the proceeds of adjudication or settlement;conversely,if the case fails,the funder cannot obtain any consideration.The third party funding in arbitration also brings problems to the arbitration procedure.Third-party funding disclosure is one of the core issues.The discussion focuses on whether disclosure obligations should be established in arbitration proceedings,the content of disclosure and the extent of disclosure.On the basis of advocating the obligation of disclosure of third-party funding,the first chapter of this paper introduces the phenomenon of third-party funding in arbitration,and clarifies the concept and characteristics of third-party funding in arbitration in the narrow sense of this study.Then it introduces the international regulations on third-party funding in arbitration.The second chapter discusses why third-party funding in arbitration calls for disclosure obligations.Firstly,it is pointed out that third-party funding may result in conflicts of interest of arbitrators;Secondly,by explaining the need to avoid the adverse consequences of conflict of interest,and to analyze the advantages and disadvantages of disclosure obligations,the necessity of establishing third-party financing disclosure obligations is demonstrated.The third chapter puts forward the concrete idea of establishing the disclosure obligation of third-party funding in arbitration.Firstly,it is proposed to amend the arbitration rules to add disclosure obligations;secondly,the specific content of the disclosure obligation of the parties and arbitrators,the extent of disclosure,and the object and time of disclosure are described;finally,the handling of the arbitration institution after disclosure is expounded.At the end of this paper points out the present situation and development of third-party funding in commercial arbitration in China,and puts forward some suggestions for establishing the disclosure obligation of third-party funding arbitration in China.