Champerty (Noun)
Meaning
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".
Classification
Nouns denoting acts or actions.
Examples
- The lawyer's offer to cover the costs of the lawsuit in exchange for a percentage of the settlement was an example of champerty and therefore considered unethical.
- A law firm was accused of champerty for promising to pay the expenses of a large class action lawsuit in exchange for a significant portion of the potential award.
- Soliciting personal injury cases by offering to cover clients' expenses in exchange for a share of the damages is often seen as a form of champerty.
- A lawyer was disbarred for engaging in champerty by entering into an agreement with his client to pay the costs of a frivolous lawsuit in exchange for a percentage of the potential award.
- The code of professional conduct prohibits lawyers from engaging in champerty by funding a client's lawsuit in exchange for a contingency fee that exceeds a reasonable percentage of the recovery.