GEOFFREY L. BERMAN (IN HIS CAPACITY AS TRUSTEE OF THE LENDER TRUST) v. SPF CDO I, LTD AND OTHERS

GEOFFREY L. BERMAN (IN HIS CAPACITY AS TRUSTEE OF THE LENDER TRUST) v. SPF CDO I, LTD AND OTHERS

The Deed of Assignment was held not to be champertous: it has a legitimate commercial purpose (to fund claims that otherwise cannot be prosecuted), was approved by the US Bankruptcy Court and supported by beneficiaries, and therefore does not involve trafficking or gambling in litigation; assignments of choses in action are permissible unless independent evidence shows the transaction's object is maintenance or champerty.

Citation
GEOFFREY L. BERMAN (IN HIS CAPACITY AS TRUSTEE OF THE LENDER TRUST) v. SPF CDO I, LTD AND OTHERS
Parties
Plaintiff / Trustee: Geoffrey L. Berman (in his capacity as Trustee of the Lender Trust); Defendant / Beneficiary: SPF CDO I, LTD.; Defendant / Beneficiary: FIELDPOINT I, LTD.; Defendant / Beneficiary: FIELDPOINT III, LTD.; Defendant / Beneficiary: SPCP GROUP, LLC; Assignee: Remedy Asia Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 March 2011
Case Number
HCMP1321/2010
Procedural Posture
Miscellaneous Proceedings No.1321 of 2010 (order 85 Trust Determination) / Reasons for Decision (decision 4 March 2011)
Outcome
Leave granted to the Assignor to enter into the Deed of Assignment with Remedy Asia Limited.
Legal Topics
Champerty, Maintenance, Assignment of Chose in Action, Litigation Funding, Trustee Powers, Order 85 Rules of the High Court, Recognition of Foreign Trust
Source Language
EN
Trusts Bankruptcy Civil Procedure Equity Criminal Law Champerty Maintenance Assignment of Chose in Action +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 14 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Geoffrey L. Berman (in his capacity as Trustee of the Lender Trust)

Plaintiff / Trustee

SPF CDO I, LTD.

Defendant / Beneficiary

FIELDPOINT I, LTD.

Defendant / Beneficiary

FIELDPOINT III, LTD.

Defendant / Beneficiary

SPCP GROUP, LLC

Defendant / Beneficiary

Remedy Asia Limited

Assignee

Procedural Posture

Miscellaneous Proceedings No.1321 of 2010 (order 85 Trust Determination) / Reasons for Decision (decision 4 March 2011)

Legal Issues

  1. 1 Whether the trustee has leave under Order 85 to enter into the Deed of Assignment with Remedy Asia Limited
  2. 2 Whether the Deed of Assignment would constitute maintenance or champerty (criminal/tort/public policy) under Hong Kong law
  3. 3 Whether the court should give prospective guidance under Order 85 in respect of a foreign trustee and non‑parties to potential future litigation

Ratio Decidendi

The Deed of Assignment was held not to be champertous: it has a legitimate commercial purpose (to fund claims that otherwise cannot be prosecuted), was approved by the US Bankruptcy Court and supported by beneficiaries, and therefore does not involve trafficking or gambling in litigation; assignments of choses in action are permissible unless independent evidence shows the transaction's object is maintenance or champerty.

Court Disposition

Leave granted to the Assignor to enter into the Deed of Assignment with Remedy Asia Limited.

Orders

  • The Assignor has the leave of the court to enter into the Deed of Assignment with Remedy Asia Limited on the terms set out in Exhibit GB-1 to the affidavit of Geoffrey L. Berman dated 20 May 2010.