IMPACT OF THIRD PARTY FUNDING TO THE DECISION OF ARBITRATORS RELATING TO SECURITY FOR COSTS IN INTERNATIONAL ARBITRATION

Use of third party funding by the parties is getting more common in international arbitration practice. Third party funding raises certain procedural problems such as impartiality and independence of arbitrators, confidentiality or decision on costs. One of those procedural problems relates to security for costs. In other words, should the arbitrators take into account the fact that one of the parties benefit from third party funding in deciding the other party’s request of security for costs? This study focuses on this question in the light of doctrine and case law