The High Court has upheld the validity of an ATE insurance
policy and expressly confirmed that ATE insurance does not fall
foul of the torts of maintenance or champerty.
Unlike many other common law jurisdictions, the torts of
maintenance and champerty continue to exist in Ireland.
Litigation funding is an issue that has come to the fore in recent
times and as a result the ancient laws of maintenance and champerty
have been put under the spotlight.
In the recent case of Greenclean Waste Managment Limited v Leahy
(No.2), the High Court confirmed that the rules against maintenance
and champerty remain applicable in an Irish context and that an ATE
policy must comply with these rules in order to be valid and
enforceable. However the High Court found that the policy
before the Court did not breach the common law principles of
champerty or maintenance. The law of champerty must be
interpreted in line with modern ideas and realities. ATE insurance
serves an important