Landmark decision on third-party funding of arbitrations

Essar Oilfields Services Ltd v Norscot Rig Management PVT Ltd [2016] EWHC 2361 (Comm), 15 September 2016

This is a landmark decision from the Commercial Court recognising third-party funding of arbitrations. The background to this decision was an International Chamber of Commerce (ICC) arbitration in which Norscot was awarded the cost of its third-party funding, after Essar was found liable to Norscot for damages for repudiatory breach. Essar sought to set aside the arbitrator’s award as to the third-party funding costs.