Arbitration funding

Essar Oilfields Services Ltd. v. Norscot Rig Mgmt.

England & Wales High Court (arbitration appeal) · UK · 2016 · Decided

Citation/Docket: [2016] EWHC 2361 (Comm)

Parties & Funders

Posture: Recoverability of funding costs in arbitration
Funder(s) involved: Woodsford (funder of Norscot)

Background

An ICC tribunal awarded the winning party the cost of its litigation funding (including the funder's uplift) as 'other costs'; the loser challenged the award.

Holding & Outcome

Upheld, arbitrators may award third-party funding costs under the Arbitration Act.

Practical Lesson

In arbitration, funding costs can shift to the loser, a major economic asymmetry vs. court litigation that parties should price into strategy.

Matters like this one often turn on expert testimony, on valuation, industry custom and practice, legal ethics, or damages. The Institute partners with world-class expert witness referral companies for this purpose.

Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.

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