⚖️History of litigation finance

Historically, a legal doctrine called “Champerty” was formed in England to prohibit landlords from investing in poor people’s lawsuits. This was practiced to save the courts from the purposes which it was not made for. Champerty was observed in most parts of the world.

Until 1993, Champerty was also practiced in Australia. Then they rolled off this doctrine and allowed people to invest in filing class-action lawsuits, which were extremely expensive to file. This practice traveled back to England and the USA.

Since then, this industry has grown exponentially. The higher the risk, the higher the returns. Hence, litigation finance has outperformed other investment options in terms of return over the past few years.