France - Part II Country Report - Handbook on Third-Party Funding in International Arbitration
Originally from Handbook on Third-Party Funding in International Arbitration
1.1. TPF Regime in France
1.1.1. Is TPF commonly used in your Jurisdiction? If yes, since when (is it a new trend or a well-established practice)?
Yes, Paris being one of the oldest and now among the leading international arbitration places worldwide, with a large number of international arbitration practices operating from Paris, TPF is commonly used in France indeed. The exponential development of TPF in international arbitration in France dates back to 2010-2012 even though the practice itself was known of even earlier. In fact, ICC France launched its researches on the subject back in 2010 and published its first report on TPF in 2014 which goes to show that there were several instances even before.
1.1.2. Please shortly describe the TPF market in your Jurisdiction. Is it dominated by local or international Funders, which type of Funders are active, which cases get typically funded? Is there any source on Funders?
The funders operating in the Paris market are mostly international, from the UK or the US to be precise, with there being just one French funder of prominence. Similarly, the cases that attract funders are international arbitration matters, more likely in the field of investment arbitration (which is considered by the funders – whether rightly or wrongly – to be easier to predict in terms of outcome), than in commercial arbitration. At present, there is no source or repository of funders.
1.1.3. Are there any statutes or case law dealing with TPF or regulating Funders? If yes, please address these.
To date, published case law dealing with TPF is limited – reason being TPF is deemed legitimate and a valid practice under the French legal system. Its validity and legitimacy was in fact, recently reaffirmed in a Resolution adopted by the Paris Bar Association on the 21 February 2017.