Full Disclosure? Conflicts of Interest Arising from Third-Party Funding in International Commercial Arbitration
Citation: 101 Geo L.J. 1649 (2013)
This Note addresses both ad hoc and institutional arbitration. Three of the most prominent institutions for international commercial arbitration are the International Chamber of Commerce (ICC) in Paris; the International Center for Dispute Resolution (ICDR), a branch of the American Arbitration Association based in New York; and the London Court of International Arbitration (LCIA). Ad hoc arbitration is often conducted under the UNCITRAL Rules. This Note will examine the effect of third-party funding in light of the arbitral rules of these four bodies: the ICC, ICDR, LCIA, and UNCITRAL.
Although the discussion in this Note is based primarily on the rules for international commercial arbitration, the analysis applies to domestic arbitration as well. The rise of a third-party funding industry in the United States, for example, will likely cause more arbitrations conducted under the AAA’s Commercial Arbitration Rules to face conflicts of interest issues. Indeed, the American Bar Association already has begun to analyze comprehensively the professional responsibility issues arising from third-party funding. The analysis in this Note focuses on international arbitration, but the underlying conflicts issues and the suggested proposal can be applied to domestic arbitral rules as well.