The Role of Third-Party Funding in Brazilian Arbitral Proceedings: the Legal Nature of the Financing Agreement and the Procedural Effects

Abstract

The increasing use of arbitration in Brazil arouses the need for the permanent development of arbitration doctrine. In this perspective, the promotion of skillful measures to encourage the use of arbitration. To clarify, the presence of third-party investors has great aptitude for the development of this dispute settlement mechanism. Under that context, methods should be devised in order to enable the third-party funder to have the legal security necessary to carry out its investment, so as not to suffer undesired procedural effects. A controversial issue in the specialized literature, the participation of third parties in arbitration, defended in this article as an alternative to the financier, presupposes knowledge of the nature of the legal business and the broad view of the concept of part of the arbitration clause, which was sought to outline in this work. By considering all the values involved in the theme, Brazilian national arbitration will have a great ally in favor of its development.