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Home > Journal > Advance publication

Consequences of Not Regulating Third-Party Funding in Commercial Arbitration in Ecuador

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D.F. Ibarra Villacís
D.F. Ibarra Villacís

Published 24 March 2023

Abstract

As is the case in most countries, there is no express regulation regarding Third Party Funding (TPF) in Ecuador. This vacuum has elicited variegated responses from arbitration experts. Some argue that strict regulation would limit the development of TPF, while others argue that the lack of regulation is what make TPF works. However, this current analysis of the positions and problems regarding TPF proposes that it would be more beneficial and efficient to regulate TPF within the rules of each arbitration center at the domestic level, through general recommendations that do not establish excessive barriers to the operation of TPF. Ecuador possesses a legal system that is TPF-friendly, since this financing method is not contrary to public policy, and per national legislation parties can act under the principle of freedom of choice in the absence of an express prohibition.

Previously published as Ibarra Villacís, D.F.. «Consecuencias de la ausencia de regulación del financiamiento por terceros en el arbitraje comercial en Ecuador». USFQ Law Review, Vol 8, no 2, octubre de 2021, pp. 105-129, doi: 10.18272/ulr.v8i2.2272. Republished with kind permission.

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Suggested Citation

D.F. Ibarra Villacís (2023, forthcoming) "Consequences of Not Regulating Third-Party Funding in Commercial Arbitration in Ecuador"
(TDM, ISSN 1875-4120) March 2023, www.transnational-dispute-management.com

"Advance publication" is the name given to material that is published ahead of its appearance in a regular structured issue of our Journal. It is also possible to monitor this via RSS. Subscribers will receive update alerts via e-mail of the published articles as soon as they have been added to the website.

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