Out-Law News | 25 Jun 2021 | 3:18 am |
Singapore’s Law Ministry will extend the remit of the third party funding (TPF) framework from 28 June, extending the kinds of litigation which third party funding can be used for.
The new categories of proceedings to be covered include domestic arbitration proceedings, court proceedings arising from or connected with domestic arbitration proceedings, proceedings commenced and remaining in the Singapore International Commercial Court (SICC), appeals arising from decisions made in SICC proceedings, and mediations relating to any of the above proceedings.
The move comes in the context of the Covid-19 pandemic which may result in a rise in disputes and companies facing insolvency risks. Funding options such as TPF allow litigants to “pursue meritorious claims in permitted proceedings”.
It “offers businesses an alternative avenue to fund meritorious claims and further strengthens Singapore’s position as an international commercial dispute resolution hub”, said the Law Ministry in a statement.
Arbitration expert Chen Han Toh of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “I welcome these extensions to the third party funding framework. They are certainly on-trend and will further enhance Singapore’s standing and competitiveness as a leading multi-offering hub for international dispute resolution.”
Singapore introduced the TPF framework for the first time in 2017 for international arbitration proceedings and related court and mediation proceedings.