Champerty (/'tʃæmpəti/) is a legal term that refers to a person who finances someone else's lawsuit in exchange for a share of the winnings. It is spelled with a "ch" sound at the beginning, which is phonetically represented by the /tʃ/ sound. The next syllable is pronounced with a short "a" sound, as in the word "cat", which is represented by the /æ/ symbol. The final syllable is pronounced with a stress on the first vowel, which is an "e" sound, represented by the /ɛ/ symbol.
Champerty is a legal term that refers to an arrangement where a person, known as a champertor, financially assists in another person's legal case in exchange for a share of the proceeds if the case is successful. It involves a third party who has no legitimate interest in the lawsuit but actively supports it in hopes of profiting from the outcome.
In champerty agreements, the champertor typically covers the costs of the litigation, such as attorney fees, court filing fees, and other expenses, in exchange for a portion of the recovered damages or settlement amount. This type of arrangement is usually considered unethical or illegal in many jurisdictions as it can undermine the integrity of the judicial system and encourage frivolous lawsuits.
The rationale behind the prohibition of champerty is to prevent the sale or commercialization of legal disputes, which could lead to abuses, exploitation, or interference with justice. Champerty is often associated with litigation funding and is distinct from legitimate forms of legal assistance such as contingent fees, where an attorney receives a percentage of the recovery for their services.
Laws regarding champerty vary across jurisdictions, and some places allow limited forms of litigation funding, particularly in cases where accessing justice may be difficult due to financial constraints. However, champerty remains largely disapproved and illegal in many legal systems, aiming to uphold the principles of fairness, impartiality, and the administration of justice.
The word "champerty" comes from Old French "champart" or "champartie", which was derived from the Latin "campus partitus" meaning "divided field". In medieval Europe, especially in England, "champerty" referred to a specific legal practice known as "maintenance and champerty". This practice involved financially supporting or interfering in someone else's legal proceedings for personal gain. The term "champertous" was used to describe the unlawful sharing of the proceeds in a lawsuit. Over time, "champerty" became associated specifically with aiding or financing a lawsuit in exchange for a share in the profits.