Champerty & maintenance

Phoenix Light SF Ltd. v. U.S. Bank N.A.

U.S. District Court, S.D.N.Y. · US (NY) · 2020 · Decided

Citation/Docket: 2020 WL 1285783 (S.D.N.Y. Mar. 18, 2020)

Parties & Funders

Posture: Assignee-plaintiffs vs. trustee banks
Funder(s) involved: (CDO claim assignees)

Background

Assignments of rights to sue under CDO trust certificates, executed mid-litigation to cure standing problems.

Holding & Outcome

Held champertous under Justinian, assignments made for the purpose of litigation violated § 489.

Practical Lesson

Standing 'fixes' by assignment during litigation are a champerty trap in New York.

Matters like this one often turn on expert testimony, on valuation, industry custom and practice, legal ethics, or damages. The Institute partners with world-class expert witness referral companies for this purpose.

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.

← Back to the Dispute Library