Arbitration Panel Spotlights Third Party Funding at OPEN FEST

This week saw the OPEN FEST of Arbitration, where large Spanish and international companies focus on greater transparency and agility in investment arbitration. Within this framework, different experts from organisations gave their point of view on investment arbitration.

A panel featured by Cristina Soler, CEO of Ramco; José Julio Figueroa, General Counsel of Acciona; Carlos Gutiérrez García, Litigation Director at Siemens Gamesa; Ignacio Del Cuvillo, Director of Legal Corporate Services & Finances at Repsol, discussed investment arbitration and its application to Third Party Funding.

The discussion, moderated by Claudia Frutos-Peterson, managing partner at Curtis, Mallet-Prevost, Colt & Mosle LLP in Washington, also unveiled the increased use of Third Party Funding that has taken deep roots in the commercial and investment arbitration arena. In addition, according to the Global Arbitration Review (GAR) 100 annual survey, firms reported 208 funded arbitrations in 2023 compared to 198 in 2022.

Businesses expressed concerns over process delays and costs, emphasizing the need for tools like Third Party Funding to navigate complex arbitrations with high execution risks.

José Julio Figueroa of Acciona noted, “Conflicts between foreign investors and host states involve significant strategic, geopolitical, and economic interests, with prolonged and uncertain execution periods.” Also Ignacio del Cuvillo of Repsol highlighted challenges in executing arbitral awards, given state immunity protections, advocating for a review of arbitrator appointment systems.

Carlos Gutiérrez of Siemens Gamesa discussed the opportunity for alternative dispute resolution methods, acknowledging the road ahead in developing a public track record. And so on Cristina Soler, CEO of Ramco Litigation Funding, emphasized the value of financial partners with arbitration expertise, facilitating effective strategy and award execution.

Successful arbitration awards often lead to complex, multi-jurisdictional enforcement proceedings, particularly against sophisticated defendants like sovereign states. Expert funding support can expedite execution, assuming part of the risk. This engagement underscores the critical role of experienced funders in ensuring successful arbitration outcomes.