Beyond the Myth of the Bermuda Triangle:A Swedish Perspective on Conflicts ofInterest in the Context of Third-PartyFunding in International Arbitration

Abstract

The issue of potential conflicts of interest in cases involving third-party funding (TPF) has been widely debated since TPF emerged in the 2000s. The most discussed issue relating to conflicts of interest has been the situation where an arbitrator may have a previous or existing relationship with a funder. However, it has also been argued that TPF can give rise to potential conflicts of interest emanating from the relationship between the funder and a funded party, counsel, or the funded party’s opposite party.
In §9.02 of this chapter, we examine what actually constitutes a conflict of interest, howthe contractual TPF relationship is usually structured in Sweden, and whether it can generally be said that conflicts of interest are inevitable, or highly likely, to arise for funders and counsel involved in a funded dispute. In §9.03 of this chapter,weprovide an overview of rules and best practices regarding conflicts of interest and disclosure in relation to arbitrators in funded international arbitrations seated in Sweden.