Singapore Court Rejects Public Policy Challenge to Tribunal’s Refusal of Third-Party Funding Costs
The Singapore International Commercial Court has upheld an arbitral tribunal's refusal to award third-party funding costs, rejecting arguments that denying such recovery offends public policy or amounts to a procedural failing reviewable under the Model Law.
As reported by the Wolters Kluwer Arbitration Blog, the decision in *DTH and another v DTF and others* [2026] SGHC(I) 5 arose from a joint venture dispute arbitrated under the SIAC Rules. The tribunal awarded the applicants approximately US$14.7 million but declined to award roughly US$14.6 million in funding costs, leaving them with minimal net recovery.
The applicants advanced two grounds. The first was that refusing funding costs conflicted with Singapore's public policy of promoting access to justice for impecunious parties. The court disagreed, holding that access to justice framed that narrowly does not rise to the level of public policy, and noting that Singapore's own SICC Rules expressly prohibit the recovery of third-party funding costs. A domestic rule barring recovery makes it difficult to characterise the same outcome in arbitration as contrary to national policy.
The second ground was that the tribunal had failed to comply with the agreed arbitral procedure. The court held that costs determinations fall outside the scope of procedural review under the Model Law, because they are substantive outcomes rather than questions of process. Framing an unfavourable costs result as a procedural defect does not convert it into a reviewable one.
On the underlying analysis, the tribunal had excluded the funding costs because certain fees were calculated as a percentage of the resolution amount rather than by reference to the principal advanced, placing them outside the statutory definitions governing third-party funding.
The ruling underscores that funders and funded parties in Singapore-seated arbitration cannot assume recovery of funding costs, and that how a funding agreement structures its return may determine whether those costs are recoverable at all.










