Vannin Senior Counsel Yasmin Mohammad is quoted in Global Arbitration Review (GAR) regarding the disclosure of funding arrangements in France and the issues of confidentiality and privilege that arise.
GAR reported on Mohammad’s comments in an article announcing that the Paris Bar Council has passed a resolution confirming that third-party funding is a positive development for access to justice in international arbitration and does not contravene French law.
A working committee chaired by Paris-based arbitration specialists Isabelle Michou of Quinn Emanuel Urquhart & Sullivan and Pierre Pic of Teynier Pic is behind the resolution, which was adopted by the Paris Bar Council in February but only publicised at an event during Paris Arbitration Week at the end of April.
The resolution was introduced at an event organised by the international arbitration committee of the Paris Bar on 27 April, the penultimate day of Paris Arbitration Week. The event also featured a debate between [committee member Jean-Yves] Garaud and Yasmin Mohammad, senior counsel at Vannin Capital on the disclosure of funding arrangements and the issues of confidentiality and privilege that arise.
“Safe to say, we were largely in agreement on the issue of disclosure,” Mohammad told GAR. “Vannin Capital, like other professional funders, favours it in principle as it helps guard against procedural incidents, late arbitrator challenges or – worse – annulment of awards, all of which would have a negative impact on our investment.”
Despite that, she argued in the debate that disclosure is not always in the best interest of the claimants. Although it has the potential to positively influence the tribunal –as a reputable funder's backing implies a strong claim – she said many clients feel it is nobody’s business but theirs "whether they self-financed the claim, took a bank loan or involved a funder.”
“As we now know, the disclosure of funding also almost automatically leads to a security for costs request which, whether it is granted or not, increases the cost of the arbitration for the claimant," she said.’
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