Source: All England Reporter
Publisher Citation: [2002] All ER (D) 92 (Jan)
Court: Court of Appeal, Civil Division

Thorpe and Buxton LJJ

Representation Andrew Charman (instructed by Thurfields, Kidderminster) for the claimant.
  John Mason (instructed by Berry, Redmond & Robinson, Weston-super-Mare) for the defendant.
Judgment Dates: 17 January 2002


Contract - Champerty - Public policy - Claimant and defendant entering into joint venture - Claimant entering into agreement to help defendant conduct unrelated litigation for consideration of part of proceeds of litigation - Judge finding claimant entitled to proceeds of litigation - Whether agreement champertous - Whether agreement contrary to public policy.

The Case

The correct question for consideration in determining whether an agreement was champertous was whether or not it had been demonstrated that a party had a legitimate interest in the subject matter. In reaching that decision, a court would have regard to all aspects of the transaction taken together and looked at as a whole. In the instant case, the judge had been entitled to conclude that the claimant had a legitimate interest in the outcome of the litigation and that an agreement with the defendant to share the proceeds was not champertous or contrary to public policy.

Practice Areas

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