Simon Batifort Quoted by Law360 on Third-Party Funding in International Arbitration

Law360 quoted partner Simon Batifort in an article published on October 17, 2024 entitled “Mexico Phosphate Case Shines Light On 3rd-Party Funding.” The article concerns an arbitral award obtained by Odyssey Marine Exploration Inc. against Mexico and the company’s announcement that it expected “most or all of the proceeds of the award will be used to satisfy its litigation financing obligations.” The article states in relevant part:

“‘Proponents of third-party funding in [investor-state dispute settlement]’ — or ISDS — ‘argue that it is necessary to allow impecunious claimants to access justice and obtain relief. It is hard to see how such a purpose is served where the claimant, as in this case, has to transfer “most or all” of the proceeds of the award to the funder,’ Curtis Mallet-Prevost Colt & Mosle LLP partner Simon Batifort told Law360 in an email. ‘These kinds of practices renew the debate as to whether third-party funding in ISDS should be more strictly regulated,’ he added, noting that a United Nations working group last month floated a proposal to limit third-party funding ‘when the expected return to the third-party funder exceeds a reasonable amount.’ The group he references is the United Nations Commission on International Trade Law's Working Group III, which has been working since 2017 to reform investor-state arbitration.”

The article is available here.