Jersey Judgment

In re Valetta Trust v [2012] 1 JLR 1 (25 November 2011)

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Professional case brief

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Source document

01

Holding and result

A third party funding agreement is not champertous and contrary to public policy if the plaintiffs retain control of the litigation and the arrangement merely facilitates access to justice.

Court disposition

agreement not champertous; not contrary to public policy

02

Material facts

Parties

Valetta Trust

Plaintiff

Unknown (third party funder)

Defendant

03

Procedural history

  1. Posture

    Civil / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The agreement is not champertous as the plaintiffs retain control of the litigation and the funding arrangement merely facilitates access to justice.
Respondent
The agreement is champertous and unenforceable as it involves a third party funding litigation in return for a share of the proceeds, which is contrary to public policy.

05

Court’s reasoning

  1. 01

    common law

    Agreements for third parties to fund litigation in return for a share of the proceeds are champertous and unenforceable if they have a tendency to corrupt justice.

  2. 02

    judgment

    An agreement for a third party to pay plaintiffs' costs and any adverse costs orders, with plaintiffs retaining control of the litigation, is not champertous and facilitates access to justice.

06

Ratio, limits and disposition

Ratio decidendi

A third party funding agreement is not champertous and contrary to public policy if the plaintiffs retain control of the litigation and the arrangement merely facilitates access to justice.

Court disposition

agreement not champertous; not contrary to public policy

Source and reliance status

Official court record

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Judgment text

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Source document

Court record

Judgment

[2012] 1 JLR 1

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BAILII >> Databases >> Jersey Law Reports >> In re Valetta Trust v [2012] 1 JLR 1 (25 November 2011) URL: https://www.bailii.org/je/cases/JLR/2011/JLR121001.html Cite as: [2012] 1 JLR 1 [ New search ] [ Help ] In re Valetta Trust v 2012 (1) JLR 1 (25 November 2011) Contract-illegal contracts-agreements contrary to public policy-maintenance and champerty-agreement for third party to fund litigation in return for share of proceeds champertous and unenforceable as contrary to public policy if tendency to corrupt justice-agreement for third party to pay impecunious plaintiffs' costs and any adverse costs orders, with plaintiffs in control of litigation, not champertous but facilitates access to justice The document you wish to view is available to registered users or can be purchased as a PDF. To purchase this document in PDF format or alternatively to Register to purchase membership go to the Jersey Law website via this link: 2012 (1) JLR 1 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/2011/JLR121001.html

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