champerty
- A pact where a person financially backs a plaintiff's lawsuit in exchange for a share of the winnings or settlement; though considered illegal in some states, it forms the basis of contingency fee arrangements with lawyers
- Despite champerty being illegal in their state, they went ahead with the agreement, hoping to make a profit from the final settlement.
- Contingency fee arrangements with attorneys often involve champerty, where the attorney finances the lawsuit and later receives a percentage of the recovery.
- When the plaintiff couldn't afford the legal fees, a friend offered to finance her case under the principle of champerty.
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