Champerty & maintenance

2770095 Ontario Inc. v. Morgan

Ontario Superior Court of Justice · Canada · 2023 · Decided

Citation/Docket: 2023 ONSC (see Fasken client alert, Apr. 2023)

Parties & Funders

Posture: Champerty attack on assigned fraud claims
Funder(s) involved: (Assignee vehicle, not a commercial funder)

Background

A foreign entity assigned fraud claims to an Ontario shell created to litigate them, keeping ~3% for the assignor and ceding all control.

Holding & Outcome

Action dismissed as champertous 'trafficking in litigation', despite a strong prima facie fraud case.

Practical Lesson

Even pro-funding jurisdictions draw the line at claim-trafficking structures with nominal assignor interest and total control transfer.

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Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.

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