CEU Electronic Theses and Dissertations, 2025
| Author | Huk, Yulianna |
|---|---|
| Title | The Development of Third-Party Funding and Opposing Interests Between Funders and Funded Parties in International Arbitration - A Story of New Opportunities and Challenges |
| Summary | This thesis examines opposing interests between funders and funded parties in third-party funding (TPF) arrangements within the international arbitration context. TPF has evolved from a prohibited practice to a multi-billion-dollar industry that provides access to justice while creating systematic power imbalances between commercial funders and dispute parties. Firstly, the thesis provides an analysis of TPF by examining its historical development, the key stakeholders involved in funding relationships, and the commercial criteria that determine what makes cases “fundable”. This foundation reveals how TPF's market-driven evolution has established commercial logic that does not always align with justice objectives. Secondly, the analysis identifies three main types of opposing interests that emerge naturally from TPF's commercial structure: strategic and economic tensions arising from conflicting profit and business objectives, settlement dynamics where funder and funded party interests diverge over resolution approaches, and lawyer-client relationship complications that disrupt traditional professional obligations. The thesis also examines contractual mechanisms used to manage these tensions and analyzes regulatory frameworks across major jurisdictions. The research reveals that current regulatory responses focus primarily on disclosure requirements rather than substantive mechanisms to address opposing interests. While some jurisdictions have developed specific protections, these remain fragmented rather than comprehensive. However, major jurisdictions have begun examining TPF more closely and acknowledging opposing interests, as evidenced by the European Union's comprehensive mapping report on TPF and recent United States legislative developments including new federal laws and congressional committee investigations. The thesis concludes that opposing interests are structural features of TPF that require management rather than elimination. As the industry matures, these tensions will likely intensify unless balanced regulatory frameworks emerge that preserve TPF's benefits for both funders and funded parties. |
| Supervisor | Petsche Markus Aurel |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2025/huk_yulianna.pdf |
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