February 07, 2020 Feature

Champerty, Usury, and Third-Party Litigation Funding

By William J. Harrington

Image from Getty Images

Third-party litigation-funding agreements, in which a third-party funder agrees to pay the attorney fees and costs of prosecuting a lawsuit in exchange for a share of the underlying claimant’s recovery, are the subject of emerging case law addressing whether courts will enforce such agreements.1

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