Document Type : Research Paper

Authors

• Mohammad Ali Bahmaei ¹
• Mohammad Mahdi Asadi ²

¹ Assistant Professor, Faculty of Law, Shahid Beheshti University

² phD.candidate in International Trade and Investment Law at Shahid Beheshti University

Abstract

The third party funding in international arbitration (TPF), is a new and emerging phenomenon. Despite the variety of third-party finding arrangements for international arbitration, what is being studied is a new way in which a third-party funder, if his client wins, deserves an agreed amount with his client, but failing, He has no right to refer to the client for the costs incurred. The purpose of this article is to describe and analyze the major challenges associated with using such a foundation. The validity and position of this phenomenon in the legal system of different countries , due to the lack of regulations, as well as The impact of some concepts , are the subject of discussion. On the other hand, the growing use of it requires that this phenomenon be quickly regulated, and provide clear answers to the issues and the major challenges surrounding it. Recognition of the challenges and solutions can help to identify and accept this entity in different countries, especially in Iran, and provide the ground for encouraging individuals to invest in this field, and ultimately, it strengthens the position of countries as the seat of international arbitration.

Keywords

• The Basic challenges
• Validity and Legal Status
• The Necessity of Regulating
• Recovery of Costs
• Security for Costs
• Privilege
• Disclosure and Conflicts of Interest