Originally from Handbook on Third-Party Funding in International Arbitration, Second Edition

PREVIEW PAGE

PART I.  THE THIRD-PARTY FUNDING LANDSCAPE

1.  The TPF market in Montenegro

1.1.  Please shortly describe the TPF market in your Jurisdiction.

TPF as a separate institute is not regulated by legislation or by arbitration rules of arbitral institutions in Montenegro. The most common form of TPF in Montenegro is by engagement of attorneys based on a contingency fee, i.e., success fee arrangements.

1.2.  Is it dominated by local or international Funders? Which Funders are active? Which cases typically get funded?

As there are no rules on TPF as a separate institution and the parties in arbitrations seated in Montenegro are not obliged to disclose whether they are funded by third parties, there is limited information on potential Funders in arbitration proceedings in Montenegro. In practice, mostly high-value, investor-state arbitrations get funded by international Funders and engage  attorneys, i.e., law firms as mentioned in the previous paragraph (local or international).

1.3.  What types of funding exist (e.g., ISDS, Commercial Arbitration, portfolio funding, respondent-side funding, etc.)?

As there is limited information on TPF in Montenegro due to the reasons mentioned under 1.2, and since most of the arbitral proceedings in Montenegro are confidential, there is no available insight on the types of funding of arbitral proceedings in Montenegro. The most common type, as mentioned, is the funding of investor-state disputes including funding by attorneys, i.e., by law firms on the basis of conditional fee agreements.

1.4.  Is there any directory on available Funders?

There is no directory on available Funders.

1.5.  Are there any funding brokers active in your Jurisdiction?

Funding brokers are not common in Montenegro, but in our practice we have come across a couple of funding brokers that are active in our jurisdiction.