Third Party Funding and Arbitration in Hong Kong

This checklist appeared first in the Dispute Resolution module of Lexis+^® Practical Guidance Hong Kong. Complete the form below to receive the full article. 

In brief, third party funding involves a third party providing funds to cover a claimant's legal costs and expenses to pursue a claim.

In return, the funder expects to receive a share from the proceeds recovered by the claimant, which can be calculated as a percentage proportion of the damages successfully recovered by the claimant, or as a fixed return on either committed funds or the amount drawn down.

Third party funding is permitted where the place of arbitration is Hong Kong or, if outside Hong Kong for funding of services, provided in Hong Kong.

If a funding agreement is made, the funded party must give written notice of such fact, as well as of the identity of the third party funder.

For a guideline as to points of discussion when considering an arbitration, from questions to be answered if the client is interested in third party funding, to how the arrangement with the funder would work, and more, download this complimentary checklist now.