Lawsuit-funding companies, which advance litigants cash in exchange for a share of the eventual booty, have apparently departed the state of Ohio since a decision this summer by the Ohio Supreme Court (see Aug. 4) finding that such activities violate a 180-year-old state law against champerty and permit intermeddlers to “gorge upon the fruits of litigation”. “Several states, including Massachusetts, New Hampshire and South Carolina, have lifted their prohibitions against the practice. At least 100 lawsuit-funding companies have emerged nationwide since 1998 when Perry Walton, a litigation-finance pioneer from Nevada, started holding seminars to teach other entrepreneurs how to make money by doing what some critics say is akin to betting on lawsuits.” (“Lawsuit-funding companies avoid Ohio after court ruling”, AP/Miami Herald, Oct. 1)(more on champerty, from The Litigation Explosion).
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