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Litigation Commons

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Brooklyn Law Review

2018

Third Party Litigation Funding; Maintenance; Malice Maintenance; Champerty; Barratry; Bollea V. Gawker; Gawker; Disclosure; Federal Rules Of Civil Procedure; Rule 26 Duty To Disclose; Rule 11; American Bar Association Rule 1.8; Litigation

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Full-Text Articles in Litigation

Malice Maintenance Is “Runnin’ Wild”: A Demand For Disclosure Of Third-Party Litigation Funding, Anusheh Khoshsima Jun 2018

Malice Maintenance Is “Runnin’ Wild”: A Demand For Disclosure Of Third-Party Litigation Funding, Anusheh Khoshsima

Brooklyn Law Review

Third-party funding (TPLF) is when a nonparty, who does not have a direct stake in the litigation, funds a lawsuit. There are varying motivations that drive TPLF arrangements—including investors offering loans to receive a portion of the settlement or public interest groups sponsoring impact litigation. This note discusses a specific mode of TPLF that is motivated by a personal interest in the lawsuit rather than monetary gain, referred to as “malice maintenance.” At common law, maintenance was prohibited to prevent powerful and wealthy individuals form taking advantage of the court system. The majority of states today, however, permit at least …