Champerty

Champerty is the old common-law doctrine that prohibits a third party from funding a lawsuit in exchange for a share of the proceeds. Many jurisdictions have abolished or narrowed it, and the surviving rules shape what funding structures are permitted.

The doctrine, together with maintenance and barratry, was aimed at officious intermeddling in litigation. Courts and legislatures have since loosened it in most places, with some jurisdictions still applying restrictions or requiring disclosure.

For a funder, the practical questions are whether the jurisdiction permits the structure, what must be disclosed to the court or the opposing party, and what degree of control over the case the funder may hold. Agreements are drafted around those answers.

Champerty is not a single rule. It varies by jurisdiction and over time, and a position's enforceability can depend on which law governs it.