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ARTICLE · 30 JULY 2014

Champerty Doesn’t Pay! – HKSAR v. Ip Hon Ming & Others

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The District Court of Hong Kong recently convicted a solicitor and a recovery agent for champerty, sending a clear message to recovery agents and solicitors that litigation funding in return for a fee is illegal.

Hong KongLitigation, Mediation & Arbitration
Marina Fung
Marina Fung
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Keywords: recovery agents, litigation funding, champerty

Summary

The District Court of Hong Kong recently convicted a solicitor and a recovery agent for champerty, sending a clear message to recovery agents and solicitors that litigation funding in return for a fee is illegal.

Full Update

Champerty occurs when a disinterested party funds the litigation of another with a view to gaining part or a percentage of any award of the litigation. The involvement of recovery agents in personal injury cases has brought about a revival of champerty as an offence as such agents share a portion of the compensation obtained by victims of personal injury. Such arrangements are unfavourable as they result in victims being deprived of all their compensation.

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