The Narrow Application of the Champerty Doctrine

, New York Law Journal

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In their Commercial Division Update, George Bundy Smith, an arbitrator and mediator with JAMS, and Thomas J. Hall, a partner with Chadbourne & Parke, review recent Commercial Division cases that addressed the assertion of a champerty defense. While most have been cautiously avoiding finding claims champertous, one court recently held that champerty existed where a company and a law firm formed a partnership, the primary purpose of which was to acquire debt instruments and profit from the related litigation.

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