Bloomberg Law
June 3, 2020, 9:38 PMUpdated: June 3, 2020, 10:16 PM

Litigation Finance Scores Big Win in Minnesota Supreme Court (1)

Roy Strom
Roy Strom

The Minnesota Supreme Court on Wednesday abolished the common law doctrine barring champerty, providing a major victory for the litigation finance industry.

Dating back to the Middle Ages in England, such bans have long prevented outsiders from investing in legal claims in exchange for a share of the returns. Minnesota’s Supreme Court said changes in the legal profession and society meant that the “ancient prohibition” against champerty was no longer necessary, citing a long list of arguments commonly made by the litigation finance industry.

“Many now see a claim as a potentially valuable asset, rather than viewing litigation as an ...

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