Definition
A contract where a third party finances litigation in exchange for a percentage of the settlement or judgment—now illegal in most jurisdictions. It's the legal equivalent of loan-sharking for lawsuits.
Example Usage
That financing arrangement with the litigation funder looked suspiciously champertous to me.
Origin
Medieval English law; from 'champart' (sharing of crops)
Fun Fact
Modern litigation funding has created a grey area around what constitutes illegal champerty
Source: Legal ethics and history
Related Terms
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See “Champertous Agreement” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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