Definition

Noun: 1. An unethical or illegal agreement between a lawyer and a client: In this agreement, the lawyer agrees to finance, carry on, or pay the costs of a lawsuit in exchange for a share of the money or property recovered if the suit is successful. It is considered against public policy as it can encourage frivolous litigation.

Usage

• The term is used primarily in legal contexts to describe a specific type of prohibited financial arrangement in litigation.
• It is often discussed in relation to legal ethics, the history of law, and rules against the commercialization of legal claims.

Examples

• The state's bar association disciplined the attorney for champerty after he funded his client's lawsuit in return for 40% of the settlement.
• Laws against champerty are designed to prevent lawyers from stirring up unnecessary lawsuits for personal profit.
• The court refused to enforce the contract, declaring it void as it constituted champerty.

Advanced Usage

• "Maintenance and champerty": These are often mentioned together. "Maintenance" is the broader offense of improperly assisting in a lawsuit (e.g., by funding it) without a legitimate interest, while "champerty" is a specific form of maintenance where the assister shares in the proceeds.
  • The ancient doctrines of maintenance and champerty have evolved but still influence modern rules on litigation funding.

Variants and Related Words

• Champertous (adjective): Describing an agreement or action that constitutes champerty.
  • The contract was deemed champertous and therefore unenforceable.

Synonyms

• Barratry (in some historical contexts, though barratry often refers more specifically to the vexatious incitement of lawsuits).
• Unlawful litigation funding (a modern descriptive phrase).

Notes on Meaning

• Historically, champerty was a serious offense under common law. While modern rules in many jurisdictions have relaxed or replaced these ancient prohibitions with specific ethical rules, the concept remains relevant in discussions about third-party litigation funding and attorney ethics.
• The key elements are: (1) a lawyer (or sometimes a non-lawyer) (2) provides financial support for a lawsuit (3) in exchange for a share of the recovery.

Noun

1. an unethical agreement between an attorney and client that the attorney would sue and pay the costs of the client's suit in return for a portion of the damages awarded
   • soliciting personal injury cases may constitute champerty