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Third Party funding in international investment arbitration
Juráš, Jan ; Balaš, Vladimír (advisor) ; Šturma, Pavel (referee)
1 Third Party Funding in International Investment Arbitration ABSTRACT Third-Party Funding (TPF) in investment arbitration is a relatively new, but fast-growing phenomenon that is attracting a lot of attention as besides providing certain benefits, it is also connected with significant risks that could endanger the entire Investor-state dispute settlement system. This system is heavily criticized for its imbalance and for favouring investors in the arbitrages. The increasing use of TPF can even further disrupt this already fragile and unbalanced system of dispute resolution. Traditionally, TPF was used as a way of access to justice, as the external party, which was not connected to the dispute, has decided to provide finances to one of the parties of the dispute so this party would be able to initiate an impartial legal dispute settlement. International investment arbitrations have become very expensive in the last decades, and thus TPF seemed to be an ideal way of how to help an insolvent investor to access justice against states that have violated their obligations arising from investment treaties. However, ever since the 2008 financial crisis, TPF in investment arbitration has become a very profitable business operated by several big litigation funding companies. These corporations are conducting a very...
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