Sweden - 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 Sweden
The answers to the questions in the questionnaire given below are in general fairly short and do not contain elaborate information on TPF practices in Sweden. There are two reasons for this. One being that TPF is rarely used in Sweden, and the other that there is close to no legal writings regarding how this form of litigation financing is to be dealt with under Swedish law. Consequently, some of the answers below are based on the considerations of Mannheimer Swartling Advokatbyrå and not on statutes, case law or legal writings.
1.1.1. Is TPF commonly used in your Jurisdiction? If yes, since when (is it a new trend or a well-established practice)?
TPF is rarely used in Sweden. To our knowledge it is uncertain whether TPF is at all existing in national litigations or arbitrations.
When TPF is used it would be in international commercial arbitrations or international investment disputes settled at the Arbitration Institute of the Stockholm Chamber of Commerce (the “SCC”). Since commercial arbitrations are confidential and the investor’s involvement in the proceedings is often kept secret from other parties in the dispute it is hard to estimate how commonly used TPF is in international disputes settled in Sweden. Our impression however, is that the financing form is rarely used also in international disputes settled at the SCC.
It is our impression that the, however rare, use of TPF in international disputes settled in Sweden is a new trend. There is no well-established TPF practice in Sweden.
1.1.2. Please shortly describe the TPF market in your jurisdiction.
a) Is it dominated by local or international Funders, which type of Funders are active, which cases get typically funded?
There are no local Funders in Sweden. Hence, in the cases where TPF is used, the Funder is of another nationality, acting on a cross-border basis.
We have no information as to which cases typically get funded. As stated above however, TPF is, close to only, used in international arbitrations settled in Sweden, both commercial and investment disputes.
b) Is there any source on Funders (like the overview published by the German Bar)?
There is no relevant source on which Funders that are active in proceedings in Sweden.