From the abstract:
Third-party litigation funding is no longer a new phenomenon, but rather is a mainstay in global commerce and dispute resolution. Yet many observers still consider the third-party litigation funding industry as a “wild west” due to a lack of regulation in many countries. Some of the countries that have regulations suffer from a lack of uniformity and an array of conflicting laws at the sub-national level (i.e., the laws of states, provinces, territories, etc.). For example, the United States has a confusing patchwork of state laws on third-party litigation funding. This Article proposes harmonizing the regulatory framework for third-party litigation funding in the United States by identifying the three categories of interactions— transactional, procedural, and ethical—that make up third-party litigation funding, and suggesting avenues for regulation within those three categories. This approach will weave a regulatory “safety net” of minimum standards for the behaviors and interactions of the players in third-party litigation funding arrangements to ensure the integrity of the dispute resolution system in which they invest and participate.
On February 12, 2015, Professor Victoria Shannon participated in the third meeting of the Third-Party Funding Task Force, jointly organized by the International Council for Commercial Arbitration (ICCA) and Queen Mary, University of London. During the meeting, Professor Shannon presented a report on how the recent revisions to the International Bar Association’s Guidelines on Conflicts of Interest in International Arbitration addressed issues relating to third-party funding.
The mission of the Third Party Funding Task Force is to systematically study and make recommendations regarding the procedures, ethics, and policy issues relating to third-party funding in international arbitration. The Task Force is comprised of representatives drawn from among governments, corporate counsel, international arbitration counsel, arbitrators, arbitral institutions, academics, and third-party funders. Its work will be presented in a series of White Papers and a number of public colloquia to be hosted at various locations worldwide.
Information about the work of the Task Force and a list of its members is available here.
Washington and Lee law professor Victoria Shannon will participate at the ITA-IEL Joint Conference on International Arbitration this week, January 15-16, 2015 in Houston, Texas.
Professor Shannon will participate in a roundtable session, “Issue Conflict” as a Ground for Disqualifying Arbitrators: Pandora’s Box or Necessary Regulation?
Professor Shannon Presents at Freshfields on Attorney Ethics for Third Party Funding of International Arbitration
On October 8, 2014 Professor Shannon presented a lunchtime talk on the topic “Attorney Ethics for Third Party Funding in International Arbitration” at the Washington, D.C. office of Freshfields, a premier global law firm that specializes in international commercial arbitration and investment treaty arbitration.
Attorneys in the firm’s New York office attended her talk via videoconference. Professor Shannon gave advice on how to handle the ethical issues that may arise in both international commercial arbitration and investment treaty arbitration when an attorney represents a funded client or when an arbitrator hears a case involving one or more funded parties.
On Monday, August 4, 2014 Washington and Lee Law professor Victoria Shannon presented two papers at the annual meeting of the Southeastern Association of Law Schools (SEALS).
As Washington and Lee’s delegate to the SEALS New Scholars Program, Prof. Shannon presented a draft of her forthcoming article proposing revisions to the Federal Rules of Civil Procedure to address the participation of third-party litigation funders.
As a participant in the discussion group entitled “Corporate Compliance After the Crisis,” she presented a short discussion paper in which she explored whether third-party funding transactions are derivatives and whether third-party funders should therefore be regulated under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Read more of Professor Shannon’s work here.
Washington and Lee law professor Victoria Shannon was interviewed earlier this summer by Legal Funding Central, a litigation funding broker for their blog LFC360. The blog features writings about legal funding through news, informational guides, and resources.
Professor Shannon was interviewed as an expert on the topic of legal funding laws in the United States and abroad. The article appeared on LFC360 on July 31, 2014: Victoria Shannon Discusses The State of the Legal Funding Industry at Home and in International Arbitration.
Congratulations to Washington and Lee law professor Victoria Shannon! Professor Shannon’s forthcoming work Harmonizing Third-Party Litigation Funding Regulation is named among the top ten papers in the SSRN Negotiation & Dispute Resolution eJournal. The paper will appear in the Cardozo Law Review in the coming academic year.
From the abstract:
Third-party litigation funding is no longer a new phenomenon, but rather is a mainstay in global commerce and dispute resolution. Yet, many observers still consider the third-party litigation funding industry as a “wild west” due to a lack of regulation in many countries. Some of the countries that do have regulations suffer from a lack of uniformity, particularly countries with sub-national political divisions (e.g., states, provinces, territories, etc.) that have conflicting laws. The United States is an example of a country that has a confusing patchwork of laws on third-party litigation funding. This article proposes harmonizing the regulatory framework for third-party litigation funding in the United States by: (1) identifying the three categories of interactions – transactional, procedural, and ethical – that make up third-party litigation funding; (2) proposing areas for regulation within those three categories; and (3) linking those regulations together through cross-references to create a harmonized regulatory framework. This approach will weave a regulatory “safety net” of minimum standards for behaviors and interactions of the players in third-party litigation funding arrangements to ensure the integrity of the dispute resolution system.