Third-Party Funding (“TPF”) is a form of non-recourse f inancing in which a funder (typically a specialized company) with no direct involvement in a dispute undertakes to bear the legal costs associated with litigation or arbitral proceeding which a party seeking legal remedies through such proceeding (the “funded party”) would otherwise have to bear if TPF is not available. If the funded party prevails, the funder receives a prof it, typically consisting of a percentage of the awarded or adjudicated amount, or a multiple of the fund provided. During the English Medieval Ages, the present form of TPF was a common law crime under the doctrine of Maintenance, Champerty and Barratry. Maintenance refers to an assistance in
prosecuting or defending a lawsuit given to a litigant party by an outsider/stranger who has no bona f ide interest in the lawsuit; Champerty is an aggravated form of Maintenance in which the intervening ‘stranger’ to the litigation also has a f inancial interest in the outcome of the claim; and Barratry is the continuing practice of Maintenance and Champerty. The doctrine applied to arbitration proceedings as well. Driven by the need to create a level playing f ield and to enable impecunious claim holders with meritorious claims to gain more access to justice, TPF was conceived and has thrived over the last 2 decades. At the same time, the old doctrine of Maintenance, Champerty and Barratry has progressively been abolished or decriminalized due to its obsolescence. TPF is still novel for Thailand. This article is primarily intended to give the Thai arbitration community an overview on
the current trend and challenges of TPF prevalent in international arbitration arenas.