July 4, 2022
RGD Dispute Resolution Partner spoke at the SPILF Session on Third-Party Funding in Court and Arbitration Proceedings

Dmitry Kaysin, Partner and Head of dispute resolution practice at Rybalkin, Gortsunyan, Dyakin and Partners law firm (RGD), has shared his thoughts and recommendations at the session on third-party funding in court and arbitration proceedings, which took place as part of the X St. Petersburg International Legal Forum. In his speech, Dmitry Kaysin shared his experience of how communications with institutional players is organized and revealed general conditions under which parties can arrange funding.


Dmitry has described the generic communication procedure with the financing party (funder), where the law firm prepares a memorandum-portfolio disclosing the essence of the requirements, the jurisdiction of the proceedings, the question of the enforceability of the solution based on practice and the budget not only at the stage of proceedings, but also at the execution stage, which allows the funder to assess the cost of the process and financial solvency of the defendant.


The variability of methods for determining the remuneration of funders is never limited, but according to practice, funders are open for a deal if the returned funds exceed the investments by 3-4 times, and the funder itself will have certain guarantees that allow strategic control over the course of the proceedings, including conditions of the settlement agreement.


Participation of the funder could potentially create a conflict of interest within the arbitral tribunal, however, the situation has begun to change recently and the arbitration rules oblige the parties to disclose the fact of third-party funding, including the information about ultimate beneficiaries.


Dmitry Kaysin noted that he has never been supportive of the excessive interference of the regulator into legal relations, however, he believes that in relation to the third-party funding within arbitration disputes, it is necessary to resolve three main issues: (1) the obligation to disclose the fact of funding and the information about the ultimate beneficiaries; (2) fixing exceptional grounds for terminating the financing agreement, as well as the limits of the funder's intervention in the course of arbitration proceedings in cases involving a weak party that seeks funding; (3) establishing the funder's eligibility for a success fee. All these proposals can be adopted by amending the relevant laws. According to Dmitry, other regulation of this specific area is currently redundant.


The session was represented by leading Russian and international arbitration experts, representatives from major international arbitration centers, including Deputy Secretary-General at Hong Kong International Arbitration Centre (HKIAC) Eric Ng, and members of academic community.


Rybalkin, Gortsunyan, Dyakin & Partners (RGD) is a fast-paced law firm of the next generation, combining a leading Russian practice focusing on international dispute resolution and a high-end corporate practice servicing complex transactions and projects.


We support clients from all over the world in their business dealings in our key practice areas involving Russia and CIS countries. In addition, our firm offers unparalleled expertise in foreign legal matters to Russian companies with significant international presence.


We are a cohesive team of seasoned professionals with a background in leading international law firms.


Our lawyers have worked on the largest corporate deals, investigations and disputes in the history of modern Russia and represented Russian companies in over 170 jurisdictions worldwide.

Contact person:

Maria Bannova
+7 (495) 139 65 00

Press contact