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The relevance of litigation funding in maritime disputes

Updated: Apr 13, 2023



The links among states and the maritime sector transformed once the governments authorised the maritime realm in the mid-twentieth century. Several global developments have intensified the function of the oceans in foreign matters since the beginning of the century. This has resulted in a revived emphasis on marine spaces, and on the roles and obligations of states in this area, identified by the definition of a 'boundary' at sea.

What is ultimately a coastal border, and why are States eventually disputing it?

Border disputes, terrestrial or marine, include land and property control, public safety and civil rights. Bringing all these aspects together, these circumstances are particularly unpredictable, disrupting foreign ties and sometimes resulting in continued hostility among States and contribute to military confrontation in certain instances.

Disagreements over borders have detrimental consequences on wealth creation because the scarcity of required rights and competing assumptions and incertitudes about the governing authority and private organizations seeking to access the wealth of a contested region are unable to use. The establishment and recognition, by the States of the continental and exclusive economic zone regimes since the Second World War, which stretched hundreds of miles from their coasts, has led to unprecedented growth of space and maritime border disputes. Much is at stake, both economically and politically, as greater regions of the ocean with their resources are subject to national control. Furthermore, the post-war decolonization and self-developing movements provided the second life with the disintegration of the Soviet empire has led to a significant rise in the number and expansion of legally questionable ocean regions, many of which are tiny iconic nations.

Bangladesh - India maritime dispute

On October 8, 2009, the United Nations Convention on the Rule of the Sea ( UNCLOS) entered into arbitration in Bangladesh on the delimitation of maritime boundaries. On 18 December 2013, in The Hague, the Court ended its proceedings. Objection concerned with issues which include land border terminus, territorial sea delimitation, exclusive economic area and the coastal waters within and beyond 200 nautical miles.

South China Sea Rivalry Between India and China

Territorial conflicts in the South China Sea include both island and maritime arguments by many regional several, including Brunei, China, Malaysia, the Philippines, Vietnam, and the Chinese People's Republic. Conflicts are taking place both on the islands of Paracel and the Spratly as well as on sea borders in and beyond the Gulf of Tonkin. In the seas surrounding the Indonesian islands of Natuna, there is much more uncertainty.

How maritime disagreements throughout India are mediated?

  1. The most effective and constructive way of settling any bilateral or multilateral conflict is negotiation. The demarcation of marine boundaries has no exception. There are a few benefits in the process of negotiations for the demarcation of boundaries.

  2. An alternate form of diplomatic conflict resolution is provided for in Article 33 of the Charter of the United Nations (UN Charter 1994). Although mediation provides an incredibly effective means of settling diplomatic disputes, states rarely turn to mediation or good offices in the event of a maritime frontier dispute.

  3. Conciliation is also a non-judicial process for the peaceful resolution of the maritime border boundary, as specified in Article 284 (Part XV) of the LOS Convention.

  4. With the introduction of LOS in 1994, arbitration became the most common and most effective method of settling the marine border conflict.

Role of Litigation Funding in Maritime disputes

The litigation funding market is definitely in a position to represent the marine, material and oil situations. Litigation funders have also funded cases and described this sector as a sector of development in particular. LSR looked for financing organizations with a specialized investment advisor in maritime law and identified only one. Funding is available, for example, for charter group conflicts in which the consumer is not covered by P&I or FD&D. This situation is generally demonstrated in a travel charter argument by an operator or charterer.

There are also several lawsuits, but they also involve controversies over JS, contracts, ship maintenance, bunkers, shipbuilding, yachts and super yachts, port conflicts, bribery and class action in the field of cargo, vehicles, goods and insolvency, and general lawsuits. On the oil, side disagreements have also been sponsored over EPIC arrangements, the management of pipelines, the land production deals. Funding was also given at various levels, including implementation of grants, such as in the final stages of the complaint process. For statements of all kinds, Augusta supplies financing.

Funders shall cover a portion or more of the costs of lawsuits in exchange for a limited percentage of the damages if the lawsuit is successful. Funding is non-recourse and accessible at all points of the process, including planning, declarations of the case and mediation. It stressed that financing gives plaintiffs the ability to monetize settlements without a burden from the downside, freeing up cash flow for core companies and acquisitions. The deal should often be encouraged, and sometimes uncooperative or challenging rivals are placed to the negotiation table.


The optimal strategy and platform to settle conflicts are to be determined carefully on the costs and risks. While the statute and the venue relevant are always decided to in an underlying arrangement, the parties are usually free to select some means of settling the conflict. It is not uncommon for conflicts to be disputed in a series of diverse sites, from informal bilateral agreements to mediation where there is progress and to ends before a trial or an arbitration trial.

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