Champerty and Maintenance Redux [Delaware Business Court Insider]

Mark Felger and Barry Klayman, members of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring practice group, discuss the status of champerty and maintenance actions in Delaware in their Delaware Business Court Insider article, “Champerty and Maintenance Redux.” Mark and Barry write, “Champerty and maintenance are alive and well in Delaware, but for how long?” They discuss the growing use of third-party litigation financing, noting that one state bar association estimated the amount of such financing as exceeding  $1 billion in 2011 and growing, and that the Gawker case “refocused a spotlight on the practice, engendering much commentary on the benefits and drawbacks of such funding.” The recent Delaware Superior Court opinion in CIT v. DuPont “while recognizing the continuing vitality of champerty and maintenance doctrines, also provides a road map of sorts for structuring a viable financing arrangement that will pass muster so long as those doctrines survive.”

To read the full article, click here.
 


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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087

Barry M. Klayman

Member

bklayman@cozen.com

(302) 295-2035


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