Open Access. Powered by Scholars. Published by Universities.®
State and Local Government Law
University of Michigan Law School
Articles 1 - 1 of 1
Full-Text Articles in Law
Financing Plaintiffs' Lawsuits: An Increasingly Popular (And Legal) Business, Susan Lorde Martin
Financing Plaintiffs' Lawsuits: An Increasingly Popular (And Legal) Business, Susan Lorde Martin
University of Michigan Journal of Law Reform
In the late eighties and early nineties there were a few publicized cases in which the plaintiffs invited investors to finance their litigation in exchange for a share of the awards if the plaintiffs won. This kind of arrangement provides access to the justice system which might otherwise be denied impecunious plaintiffs with meritorious claims. The problem with this kind of arrangement is that it is champerty, which is prohibited in most states. This Article discusses Massachusetts' recent rejection of the champerty prohibition, the expansion of exceptions to the prohibition in this country and others, and the emergence of firms …