Third Party Litigation Funding, Assignment Of Claims And Champerty

The legality of a third party litigation funding, has not yet been examined by Cypriot Courts.

If such an issue, is raised, Cypriot Courts will look for guidance on English or other common law case law.

In the context of litigation funded by third parties, the English Courts have taken an increasingly liberal approach, to the principles of champerty, and maintenance.

In the recent case JENNIFER SIMPSON (as assignee of ALAN CATCHPOLE) -V- NORFOLK & NORWICH UNIVERSITY HOSPITAL NHS TRUST (2011) EWCA 1149, the English Court of Appeal has held that the principles of champerty and maintenance, still have teeth, particularly where claims are assigned.

In the above case, the Court of Appeal, followed the decision of the English House of Lords, in TRENDTEX TRADING CORP. -V- CREDIT SWISSE (1982) AC 679, which established that the assignment of a cause of action, will be void as against public policy, where the assignee does not have a "sufficient interest" to justify