Judicial investment (third-party litigation funding) and regional economic integration: in search of legal regulation

Abstract

In the modern financial capitalism the growing number of private and public goods tend to become a profit-making commodity, i.e. financial asset («financialization» & «commodification»). The latters do not leave aside the judicial protection of the rights and legitimate interests of citizens and legal entities. Nowadays, judicial and arbitration litigations represent abroad one of the most attractive areas of investment for potential investors. Judicial investment (third-party litigation funding) is also developing in Russia. The article examines the current state and prospects of legal regulation of judicial investment in the context of regional economic integration on the example of the proposal of the European Union (EU) Directive on the regulation of third-party litigation funding drafted by the European Parliament at the end of 2022 for the European Single Market. The research is based on historical and comparative legal methods in conjunction with other relevant scientific methods and an interdisciplinary approach. For the first time in Russian jurisprudence the article presents the appraisal of the prospects of legal regulation of judicial investment within the framework of regional integration organizations with common (single) market of goods, workforce, services, and capital. It is proposed to consider establishing standards for judicial investment at the level of the Eurasian Economic Union (EAEU), starting with third-party litigation funding of business disputes in common arbitration institute («EAEU international arbitration tribunal»), the creation of which is being discussed by the EAEU Member States and legal community.