Champerty Legal Meaning and Definition

Here is a simplified definition of the legal term Champerty.

Champerty (noun)

Champerty is a legal term that refers to an arrangement in which a person agreeing to finance a lawsuit in return receives part of the winnings, if the case is successful. This typically involves an agreement between the plaintiff (the person suing) and an attorney, where the attorney's fees are delayed until the conclusion of the case and depend on its outcome. Therefore, in a champerty agreement, the party providing the funds takes on the risk of the lawsuit's success.