International Arbitration Update No. 20

For Japanese parties involved in cross-border dealings, litigation and arbitration will likely be well known. Indeed, statistics from arbitral institutions suggest that Japanese corporates are increasingly willing to pursue resolution of their disputes through international arbitration, which contrasts with the common perception that Japanese parties are predominantly respondents in disputes, i.e., “on the back foot.”

Against this background, third party funding (“TPF”) has emerged as a key tool that may be deployed by Japanese parties. As Japanese businesses increasingly engage in cross-border disputes, navigating the intricacies of TPF and understanding how to leverage its potential to a company’s advantage has become crucial.

In this client alert, we delve into the evolving regulatory landscape of TPF in Japan, the practical applications of TPF and the strategic advantages it offers, how TPF is used in other developed jurisdictions and how TPF is already being used in Japan.