Administrative Resolution No. 14/20

RECOMMENDATIONS REGARDING THE EXISTENCE OF THIRD-PARTY FUNDING IN ARBITRATIONS ADMINISTERED BY CAMARB

The President of CAMARB – Business Mediation and Arbitration Chamber – Brazil, vested on his duties set forth in the Bylaws, hereby decides to issue the following resolution regarding the existence of third-party funding in arbitrations administered by CAMARB.

I) General Provisions

1.1 – This Resolution contains recommendations from CAMARB to parties, arbitrators, experts and the Secretariat, regarding the procedures to be adopted in case of the existence of third-party funding.

II) Third-party funder

2.1 – Third-party funder means any person, natural or legal, who is not a party to the arbitration procedure, but signs an agreement with one of the parties, with the attorneys of one of the parties, or with a related company to one of the parties in the procedure (“Third-party funder”), in order to provide material benefits or pay full or part of the arbitration costs, receiving in return remuneration or participation, full or partial, in the economic benefit to be eventually earned by the party funded in the arbitral award.

III) Disclosure for verification of possible conflicts

3.1 – The existence of a third-party funder can raise, from the perspective of the parties, reasonable doubts as to the impartiality or independence of the arbitrators and experts, due to possible bond, relationship or link, professional or academic, between them and the third-party funder that may cause conflicts of interest.

3.2 – Thereby, in order to avoid conflicts of interests between the arbitrators, experts and the third-party funder, CAMARB recommends the funded party, at the earliest opportunity, to disclose the existence and full qualification of the third-party funder.

3.3 – After receiving the information regarding the third-party funder, CAMARB shall inform the arbitrators and other parties to the arbitral procedure to verify possible conflicts.

Belo Horizonte, August 28, 2020.


Augusto Tolentino Pacheco de Medeiros
President of CAMARB