What is "champerty" in civil procedure?

Study for the NYLE Civil Practice and Procedure Test. Prepare with multiple choice questions and detailed explanations. Ace your exam with confidence!

Champerty refers to an arrangement in which one party agrees to finance another party's lawsuit in exchange for a share of the proceeds from that lawsuit. This practice is generally viewed as problematic because it can lead to conflicts of interest, where the funder may exert undue influence over the case or encourage frivolous litigation purely for financial gain.

The concept of champerty is historically rooted in legal doctrines that sought to discourage intermeddling in litigation and protect the integrity of the judicial process. Many jurisdictions either prohibit or impose restrictions on champertous agreements to prevent abuse and maintain fairness in legal proceedings.

The other choices do not accurately capture the definition of champerty. A legal agreement to share court costs does not involve a financial incentive tied to the outcome of a lawsuit, while funding a lawsuit for a fee is more akin to litigation funding rather than champerty, which specifically entails a share of the proceeds. A type of plea bargain, on the other hand, pertains to criminal law and negotiations between a defendant and prosecutor, rather than civil litigation practices. Thus, the definition provided correctly identifies the essence and implications of champerty in civil procedure.

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