Third-party funding in legal cases to be extended
Move to include more areas follows feedback from global business, arbitration communities
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Law Minister K. Shanmugam (third from right) at the official opening of the Law Society's premises at Maxwell Chambers Suites yesterday. With him are (from left) Law Society treasurer Tito Shane Isaac, Senior Counsel Philip Jeyaretnam, Law Society president Gregory Vijayendran, and vice-presidents Adrian Tan Gim Hai and M. Rajaram.
PHOTO: LIANHE ZAOBAO
Felicia Choo
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Third-party funding will be extended to domestic arbitration, certain proceedings in the Singapore International Commercial Court and mediations connected with these proceedings, the Law Ministry (MinLaw) announced yesterday.
The process involves a commercial funder agreeing to pay some or all of a claimant's legal fees and expenses. The move comes after positive feedback on third-party funding from global business and arbitration communities.
There has also been more requests for funding here since the option was introduced two years ago for international arbitration proceedings, said Law Minister K. Shanmugam.
"That, together with other efforts to really strengthen our position as a centre for international commercial arbitration, has been very good," he added.
The ministry is also considering introducing conditional fee agreements for the same types of proceedings. These involve a lawyer receiving payment of legal fees only if the claim is successful.
Such payments may include an "uplift" or "success" fee in addition to the lawyer's standard legal fees.
MinLaw is also studying if conditional fee agreements can be expanded to other categories of domestic proceedings so people who cannot afford lawyers can get better access to the justice system, added Mr Shanmugam.
The minister was speaking at the official opening of the Law Society of Singapore's premises at Maxwell Chambers Suites yesterday. It was previously in South Bridge Road.
MinLaw facilitated negotiations between the Law Society and Maxwell Chambers Suites to secure a lower rent. It is also providing additional funding.
"We think this will again help in the arbitration work and strengthen our position as a dispute resolution hub, and also level the playing field with our lawyers and foreign lawyers, because they are able to offer such agreements, where (conditional fee agreements) are permitted," said Mr Shanmugam.
MinLaw's Public Consultation on Conditional Fee Agreements ended on Tuesday and the ministry will continue to engage stakeholders, including the Law Society.
Law Society president Gregory Vijayendran backed the announcements concerning third-party funding and conditional fee agreements.
"I think it helps those that are struggling financially to find workable solutions," he noted.
"People that may be, you know, illiquid, or may have some issues with solvency will now be able to explore models with third-party funders, or models that involve conditional fee agreements."
Correction note: An earlier version of this article misstated the name of the Singapore International Commercial Court. We are sorry for the error.
