Legal Definitions - campipartitio

The term campipartitio is a historical Law Latin term that refers to the legal concept of champerty.

Champerty is an agreement where a third party, who has no direct interest in a lawsuit, agrees to finance or support the litigation in exchange for a share of the proceeds if the lawsuit is successful. Historically, champerty was considered an offense because it was believed to encourage unnecessary lawsuits and could lead to the exploitation of litigants. While its strict application has evolved in modern law, the underlying principle against outsiders profiting from litigation they instigate or fund remains relevant in many jurisdictions.

Here are some examples illustrating champerty:

• Example 1: A wealthy investor, Mr. Smith, learns about a small business owner, Ms. Jones, who is considering suing a large corporation for breach of contract but lacks the funds for a lengthy legal battle. Mr. Smith approaches Ms. Jones and offers to pay all her legal fees, court costs, and expert witness expenses. In return, he demands 30% of any settlement or judgment she receives from the corporation.

  Explanation: This illustrates champerty because Mr. Smith, a stranger to the original contract dispute, is financing Ms. Jones's litigation. His motivation is to profit from the lawsuit by receiving a share of the proceeds, rather than having a legitimate interest in the outcome of the contract itself.

• Example 2: A company, "Litigation Funding Solutions Inc.," specializes in providing capital to plaintiffs involved in personal injury lawsuits. They offer to cover all medical bills, lost wages, and legal fees for a car accident victim, Mr. Chen, who has a strong case but is financially struggling. The agreement stipulates that if Mr. Chen wins his lawsuit, Litigation Funding Solutions Inc. will receive 40% of the total damages awarded, after their initial investment is recouped.

  Explanation: This scenario demonstrates champerty because Litigation Funding Solutions Inc. is a third party with no direct involvement in the car accident. They are funding Mr. Chen's lawsuit with the explicit aim of securing a significant percentage of any financial recovery, thereby profiting directly from the litigation itself.

• Example 3: During a contentious neighborhood dispute over property lines, Mr. Davis, a local real estate developer, sees an opportunity. He encourages his neighbor, Ms. White, to sue another neighbor, Mr. Green, over an alleged encroachment. Mr. Davis offers to pay for Ms. White's surveyor fees and initial legal consultations, promising to cover further costs if the case proceeds, provided he receives a 25% share of any land or monetary compensation Ms. White might win, as he believes a favorable outcome for Ms. White could benefit his future development plans.

  Explanation: This is an example of champerty because Mr. Davis, while having an indirect interest in the neighborhood's property values, is not a party to the property line dispute between Ms. White and Mr. Green. He is actively encouraging and funding Ms. White's litigation in exchange for a direct share of the potential proceeds (land or money), thereby profiting from a lawsuit he helped instigate and finance.