Arbitral Funding For Plaintiffs
Your contract is clear and precise and relations between both parties are, and always will be amicable. However, you are involved in a commercial business and you know that disputes happen – to everyone. Commercial disputes are invariably costly and complex, and particularly costly when international arbitration is involved. You may not know, however, funding options available to resolve a dispute in international arbitration.
Third-party arbitral funding is on the rise, but with it come some risks that you should take into consideration. Costs and risks involved in international arbitration are unlike other commercial litigation. It requires highly specialized and experienced lawyers and funders who understand the arbitration process. Increasingly, law firms and businesses reach out to Pravati Capital and use international arbitration funding as a way to alleviate risk and lessen the costs of arbitration. They look to Pravati because we have successfully provided finance solutions for many high value international arbitration cases.
Even if a claim has merit, it may not be pursued simply because of the exorbitant cost involved in bringing it to international arbitration. Unless a business considers the benefits that Pravati Capital can provide. Increasingly, both corporations and law firms are relying on Pravati to fund international commercial arbitration and investment treaty arbitration.
Using third-party funding allows a commercial business to pursue meritorious claims they might otherwise not be able to pursue. Even if a business has the funding to bring a claim to international arbitration, they too should consider the benefits of third-party funding: it frees up cash flow and minimizes the risk if arbitration is unsuccessful.
Knowing that Pravati is working with you is the first step toward a successful resolution. Entering into a funding agreement with Pravati Capital provides another set of eyes to scrutinize your claim. Our investors—who have their own legal experts to assess and advance claims— are unlikely to back your claim if it doesn’t have a good chance of success.
What Pravati Capital Offers
We can further provide proactive and experienced advisers to help you resolve complex disputes that require expensive factual and technical evidence, and often unforeseen risks that come up during arbitration. Our arbitration team puts international and local knowledge to work. For instance, we advise on investor-State disputes and cross border commercial transactions, as different national laws and jurisdictions are involved. (Arbitration is now the preferred mechanism to resolve cross-border disputes.)
As well, our team can assist you to structure foreign investments that can best benefit from the protection of investment treaties before a dispute may arise.
Pravati Capital’s Criteria To Obtain Arbitral Funding Are Straight-Forward.
We finance part, or all, of the costs of international arbitration. Pravati pays the costs associated with pursuing claims as they fall due. Costs typically covered include: Attorney fees, expert’s costs and the institutional and arbitration panel fees in arbitrations.
In the event of successful international arbitration, Pravati Capital receives its share of the proceeds, which has previously been agreed upon. The percentage of the share varies by claim, duration and budget size. In the unfortunate case of a loss, neither the claimant nor the law firm need to refund Pravati for any costs incurred.
Partner with Pravati Capital today to support the future of your clients, and your firm, with the international arbitral funding you need to win.