champerty


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champerty

n. an agreement between the party suing in a lawsuit (plaintiff) and another person, usually an attorney, who agrees to finance and carry the lawsuit in return for a percentage of the recovery (money won and paid.) In Common Law this was illegal on the theory that it encouraged lawsuits. Today it is legal and often part of a "contingent fee" agreement between lawyer and client. It is not the same as barratry which is active encouragement of lawsuits. (See: barratry)

champerty

see MAINTENANCE AND CHAMPERTY.

CHAMPERTY, crimes. A bargain with a plaintiff or defendant, campum partire, to divide the land or other matter sued for between them, if they prevail at law, the champertor undertaking to carry on the suit at his own expense. 1 Pick. 416; 1 Ham. 132; 5 Monr. 416; 4 Litt. 117; 5 John. Ch. R. 44; 7 Port. R. 488.
     2. This offence differs from maintenance, in this, that in the latter the person assisting the suitor receives no benefit, while in the former he receives one half, or other portion, of the thing sued for. See Punishment; Fine; Imprisonment; 4 Bl. Com. 135.
     3. This was an offence in the civil law. Poth. Pand. lib. 3, t. 1; App. n. 1, tom. 3, p. 104; 15 Ves. 139; 7 Bligh's R. 369; S. C. 20 E. C. L. R. 165; 5 Moore & P. 193; 6 Carr. & P. 749; S. C. 25 E. C. L. R. 631; 1 Russ. Cr. 179 Hawk. P. C. b. 1 c. 84, s. 5.
     4. To maintain a defendant may be champerty. Hawk. P. C. b. 1, c. 84, s. 8 3 Ham. 541; 6 Monr. 392; 8 Yerg. 484; 8 John. 479; 1 John. Ch. R. 444;, 7 Wend. 152; 3 Cowen, 624; 6 Cowen, 90.

References in periodicals archive ?
The current direct and indirect regulation of litigation finance, through common law doctrines such as champerty (direct) and legal ethics (indirect) should be radically revised to reflect economic reality.
34) Champerty and assignment limits can apply regardless of claim type, serving to prohibit both commercial and consumer claims.
In addition to industry-wide challenges such as champerty and attorney ethical duties, other doctrines challenge the terms of individual deals or deal types, namely the doctrines of usury, (51) unconscionability, (52) and abuse of process.
Even though England and Australia did not share in the same piecemeal exceptions to the doctrine--neither had a similar history of contingent-fee litigation or widespread civil rights litigation--these countries were the first to abandon the old champerty and maintenance doctrines in favor of for-profit lawsuit investment.
Though not yet as robust as the Australian market for litigation funding, the litigation finance industry has also become relatively well established in the jurisdiction of England and Wales, where the old prohibition on maintenance and champerty was abolished by statute.
Legislative enactments generally trump common law rules, so a court trying to decide whether to apply the traditional rules of champerty and maintenance would look to a statute that establishes rules regarding the practice of litigation financing as tantamount to a legislative blessing of the practice.
Weil suspects that if there were a test case applying champerty laws to third-party litigation funding, U.
Surprisingly, none of the lower courts considered the issue of maintenance and champerty, instead agreeing with Rancman that the transactions were illegal under state usury laws.
Because the selection of counsel and the retainer agreement is one of the aspects of the litigation that the claim owner (Gingko) no longer controls, champerty and attorney ethics may be implicated.
In researching these deals, I have found no instances in which such transactions ended up being challenged through litigation on issues such as champerty.
Accordingly, the element of champerty which requires that the agreement be between a party and a person who has no interest in the controversy is not met in those cases settled through use of litigation loan agreements.
6) A component of this "intermeddling" aspect of champerty is that the "officious intermeddling" of the otherwise uninvolved third party be undertaken "for the purpose of stirring up litigation and strife [or to] encourag[e] others either to bring [an] action or to .