Litigation financing revisited

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Litigation financing revisited

It looks like litigation financing--i.e. the financing of legal suits for a share of the proceeds--is here to stay, and the New York City Bar Association is trying to come to terms with it.   Here is their

REPORT TO THE PRESIDENT
BY THE NEW YORK CITY BAR ASSOCIATION
WORKING GROUP ON LITIGATION FUNDING

"Maintenance is defined as “helping another prosecute a suit,”18 and champerty is defined as “maintaining a suit in return for a financial interest in the outcome.”19 Prohibitions against maintenance and champerty arose in medieval England.20
...
"Many U.S. states are beginning to relax prohibitions on maintenance and champerty.  Twenty-eight jurisdictions permit maintenance with varying limitations,31 and sixteen explicitly allow champerty.32 However, other states have refused to “abandon the champerty doctrine ...

"New York’s prohibition of champerty remains in force, although its breadth is uncertain.
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