Third party funding ("TPF") refers to a contractual agreement between a third party, the funder, and a claimant seeking to pursue a cause of action. TPF arrangements are usually motivated by a lack of financial resources but may also be used to mitigate costs and manage the risk of litigation or arbitration. The contract commonly provides that the funder will pay for the costs of the action in return for a percentage of the award should the action succeed.
In June 2013, a sub-committee, chaired by Ms Kim Rooney, was set up to review the current position relating to TPF for arbitration for the purposes of considering whether reform is needed, and if so, to make such recommendations for reform as appropriate.
The members of the Third Party Funding for Arbitration Sub-committee are:
|Ms Kim M. Rooney, Barrister (Chairman)
|Ms Teresa Y.W. Cheng, SC, Barrister
|Mr Justin D'Agostino, Global Head of Practice - Dispute Resolution, Herbert Smith Freehills, Solicitors
|Mr Victor Dawes, SC, Barrister
|Mr Jason Karas, Principal and Solicitor Advocate, Lipman Karas
|Mr Robert Y.H. Pang, SC, Barrister
The Sub-committee's Secretary is Ms Kitty Fung, Senior Government Counsel.
On 19 October 2015, the Third Party Funding for Arbitration Sub-committee of the Law Reform Commission (LRC) released a consultation paper proposing that third party funding for arbitration taking place in Hong Kong should be permitted under Hong Kong law.