It held that a litigation funding agreement did not violate the rule
against champerty and maintenance and indeed helped to provide access to justice to the plaintiff.
Primarily the answer is because such agreements were until recently believed to fall foul of the traditional rules
against champerty and maintenance.
Not exact matches
Technically, there are laws
against funding someone else's lawsuit — common - law rules that use odd names like «
champerty» and «barratry.»
[18] To the extent the doctrine of
champerty and maintenance remains relevant in Canadian common law, even as means of protecting the courts and vulnerable litigants
against abuses, its purpose is not and was never intended to be achieved by conferring on the courts the discretion to inquire into and approve or disapprove of a plaintiff's funding arrangements as a condition precedent to instituting or pursuing litigation.
Funding threatens decades - old common - law prohibitions
against maintenance and
champerty — i.e., the buying and selling of lawsuits.
The doctrine of
champerty was developed to prohibit tenants from financing claims
against their landlords.
The historical prohibition
against the use of outside capital to finance claims in the United States has its roots in the four - hundred year old English law principle of
champerty.
The industry subsequently expanded to fund class actions and large single plaintiff actions as successive superior court judgments overturned common law principles
against maintenance and
champerty, imported from UK common law.
Since 1995 the litigation funding industry in Australia has enjoyed a statutory exception to the common law prohibition
against maintenance and
champerty to assist company administrators and liquidators to pursue debts on behalf of creditors of a company.
Historically, the practice of funding legal action in exchange for future remuneration has been governed by the common law doctrines of
champerty and maintenance, which emerged to safeguard a party's best interests and protect the administration of justice
against abuse from nonparties.
The first statutory restrictions
against maintenance and
champerty were enacted in England in 1305, as a result of royal officials and nobles lending their names to dubious legal claims in exchange for a portion of any proceeds.