noun
- the illegal practice of financing another person’s lawsuit in exchange for a share of any damages awarded
Usage: legal term; considered unethical in most jurisdictions
Examples
- The attorney was accused of champerty for agreeing to fund the client’s case in return for half the settlement.
- Champerty laws prevent lawyers from having financial interests in their clients’ lawsuits.
- The court dismissed the case due to evidence of champerty between the plaintiff and a third-party investor.
- Many states have strict rules against champerty to maintain the integrity of the legal system.
- The practice of champerty can lead to frivolous lawsuits and conflicts of interest.
- Legal ethics courses often discuss the historical prohibition against champerty.