Sunday, February 2, 2014

Champertous Contract

An agreement whereby an Attorney undertakes to pay the expenses of the proceedings to enforce the client's rights in exchange for some bargain to have a part of the thing in dispute. Such a contract is contrary to public policy and is void. It is likewise contrary to the Code of Professional Responsibility. While lawyers may advance the necessary expenses in a legal matter they are handling in order to safeguard their client's rights, it is imperative that the advances be subject to reimbursement. The purpose is to avoid a situation in which a lawyer acquires a personal stake in the client's cause. No matter how dire the needs of the clients, a lawyer must always avoid any appearance of impropriety, to preserve the integrity of the profession.

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