Funded Claimants in BIT claim against Venezuela ordered to pay Security for Costs – a sign of things to come in BITs going forward?
In this article, Matthew Amey discusses recent cases focusing on the increasingly important issue of the application of cost-shifting and by extension, security for costs, in international arbitrations. Understanding the tools available and making early preparations in anticiaption of potential security for cost applications can avoid significant wasted costs and potential financial shocks for the applicant later in the process.
Global Arbitration Review: More than Legal Fees
The funding market has had a significant impact on the way arbitrations are funded and diverse and innovative products are continually being developed to meet the increasing needs of lawyers and their clients. In a recent article published in Global Arbitration Review, Verity Jackson-Grant writes about one such innovation – the increasing willingness of financiers to provide funding for a variety of purposes other than legal fees.
Global Legal Post: Could law firms remodel to take on hedge funds?
For how long will law firms sit back and allow third party funders to make sizeable returns from their cases before they adjust their own models to ensure the proceeds of their success largely stay with them? Many lawyers will have encountered cases that would have been ideally suited for a contingency fee or damages based agreement, however, the economic reality of risking their full fees is often too much for the law firm to stomach. Verity Jackson-Grant’s recent article published by The Global Legal Post discusses how insurance products are being successfully tailored to provide a solution to this problem.
Our Arbitration Finance Expertise
TheJudge is a global specialist broker in sourcing arbitration finance & insurance for commercial applicants around the world. We work for the client to secure the best terms we can from the market of over 25 funders, whether for clients requiring $1m of funding to finance their case through to clients who require payments exceeding $100m to monetise their awards.
Arbitration Costs Insurance Expertise
Accessing over 20 insurance companies TheJudge has been the leading broker in this specialist sector since 2000. We can arrange insurance solutions to cover:
- Own side legal fees insurance = cover for the legal fees and expenses a self-funded client pays their external lawyers against the risk of loss.
- Law firm’s contingency fee risk insurance = Insurance designed to cover a law firm’s own fee risk when engaged on a contingency fee basis.
- Adverse costs or security for costs insurance.