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KembaraXtra – Legal Terms – Maintenance and Champerty
Maintenance refers to the support or encouragement of legal proceedings by a third party who has no legitimate interest in the dispute. Champerty is a more serious form of maintenance in which the supporter receives a share of the proceeds if the case succeeds.
Historically, both maintenance and champerty were treated as crimes and torts because the law sought to prevent abuses of the legal process and speculative litigation. These offences were abolished in 1967, but agreements considered champertous may still be regarded as contrary to public policy.
Traditional English law strongly disapproved of lawyers receiving payment based on a share of the damages awarded to a client. However, reforms later introduced conditional fee arrangements, often known as “no win, no fee” agreements.
Modern courts generally focus on whether third-party funding arrangements threaten the integrity of the justice system. Legitimate litigation funding may now be permitted provided it does not encourage abuse or unfair control of proceedings.
Maintenance refers to the support or encouragement of legal proceedings by a third party who has no legitimate interest in the dispute. Champerty is a more serious form of maintenance in which the supporter receives a share of the proceeds if the case succeeds.
Historically, both maintenance and champerty were treated as crimes and torts because the law sought to prevent abuses of the legal process and speculative litigation. These offences were abolished in 1967, but agreements considered champertous may still be regarded as contrary to public policy.
Traditional English law strongly disapproved of lawyers receiving payment based on a share of the damages awarded to a client. However, reforms later introduced conditional fee arrangements, often known as “no win, no fee” agreements.
Modern courts generally focus on whether third-party funding arrangements threaten the integrity of the justice system. Legitimate litigation funding may now be permitted provided it does not encourage abuse or unfair control of proceedings.
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