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Tag: Kentucky champerty

In Seeking To Recover Money Paid To Claimant, Litigation Funding Company Prevails On Some Legal Grounds

In Seeking To Recover Money Paid To Claimant, Litigation Funding Company Prevails On Some Legal Grounds

It is a legal maxim that when a contract is illegal, courts will leave the parties where they find them.  The result is that, if a party to a contract tries to recover on the contract, it will not get any aid from the courts.  But what if the claim is not enforcement of the illegal contract, but a request for recovery of monies paid pursuant to the unenforceable contract – on an equitable theory of unjust enrichment?  There, the…

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Champerty Still Valid Defense in Kentucky, So Litigation Funding Agreements Are Void, Says Court

Champerty Still Valid Defense in Kentucky, So Litigation Funding Agreements Are Void, Says Court

A series of litigation funding agreements were champertous and therefore void under Kentucky law, a federal court has ruled. In Boling v. Prospect Funding Holdings, Civil Action No. 1:14-CV-0008-1-00081-GNS-HBB, 2017 U.S. Dist. LEXIS 48098 (W.D. Ky. Mar. 30, 2017), the federal district court reviewed the claims of an individual who had entered into a series of litigation funding agreements and later challenged the agreements, arguing that they were unenforceable due to Kentucky’s public policy against champerty and prohibition against usury….

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