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	Comments on: Champerty and maintenance explainer (Gawker/Hogan/Thiel edition)	</title>
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	<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/</link>
	<description>Chronicling the high cost of our legal system</description>
	<lastBuildDate>Sat, 11 Jun 2016 06:00:48 +0000</lastBuildDate>
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		By: Gawker Media files for bankruptcy - Overlawyered		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-337270</link>

		<dc:creator><![CDATA[Gawker Media files for bankruptcy - Overlawyered]]></dc:creator>
		<pubDate>Sat, 11 Jun 2016 06:00:48 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-337270</guid>

					<description><![CDATA[[&#8230;] to be.&#8221; [New Yorker] My recent posts on Gawker, Peter Thiel, and paying others to sue are here and [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] to be.&#8221; [New Yorker] My recent posts on Gawker, Peter Thiel, and paying others to sue are here and [&#8230;]</p>
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		<title>
		By: Gordon Crovitz on &#34;Peter Thiel&#039;s Legal Smackdown&#34; - Overlawyered		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-337117</link>

		<dc:creator><![CDATA[Gordon Crovitz on &#34;Peter Thiel&#039;s Legal Smackdown&#34; - Overlawyered]]></dc:creator>
		<pubDate>Tue, 07 Jun 2016 10:30:50 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-337117</guid>

					<description><![CDATA[[&#8230;] Olson, author of “The Litigation Explosion” (1991), explained in his Overlawyered.com blog that Mr. Thiel’s approach was predictable after maintenance [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] Olson, author of “The Litigation Explosion” (1991), explained in his Overlawyered.com blog that Mr. Thiel’s approach was predictable after maintenance [&#8230;]</p>
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		<title>
		By: Yet more on champerty, maintenance, and media liability - Overlawyered		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336733</link>

		<dc:creator><![CDATA[Yet more on champerty, maintenance, and media liability - Overlawyered]]></dc:creator>
		<pubDate>Mon, 30 May 2016 10:15:03 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336733</guid>

					<description><![CDATA[[&#8230;] financing of the Hulk Hogan lawsuit as part of a campaign to take down Gawker Media (earlier here, here). The episode, which follows Frank VanderSloot&#8217;s announcement that he wishes to devote [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] financing of the Hulk Hogan lawsuit as part of a campaign to take down Gawker Media (earlier here, here). The episode, which follows Frank VanderSloot&#8217;s announcement that he wishes to devote [&#8230;]</p>
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		<title>
		By: E M Brennan		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336644</link>

		<dc:creator><![CDATA[E M Brennan]]></dc:creator>
		<pubDate>Fri, 27 May 2016 17:48:53 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336644</guid>

					<description><![CDATA[In reply to &lt;a href=&quot;https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336561&quot;&gt;Chuck&lt;/a&gt;.

In the case of environmental  litigation, the pro bono lawyer who is successful is paid by the taxpayer, so there is no pro bono unless they lose.]]></description>
			<content:encoded><![CDATA[<p>In reply to <a href="https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336561">Chuck</a>.</p>
<p>In the case of environmental  litigation, the pro bono lawyer who is successful is paid by the taxpayer, so there is no pro bono unless they lose.</p>
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		<title>
		By: Peter Thiel, public interest law philanthropist? - Overlawyered		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336632</link>

		<dc:creator><![CDATA[Peter Thiel, public interest law philanthropist? - Overlawyered]]></dc:creator>
		<pubDate>Fri, 27 May 2016 12:30:48 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336632</guid>

					<description><![CDATA[[&#8230;] sought out and funded other litigants besides Hogan in order to make that happen. As I said in my explainer the other day, the decay of age-old rules against outsider funding of litigation (&#8220;champerty and [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] sought out and funded other litigants besides Hogan in order to make that happen. As I said in my explainer the other day, the decay of age-old rules against outsider funding of litigation (&#8220;champerty and [&#8230;]</p>
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		<title>
		By: Hulk Hogan v Gawker Legal FAQ - In Their Lawyers&#039; Words &#124; Litigation &#38; Trial Lawyer Blog		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336597</link>

		<dc:creator><![CDATA[Hulk Hogan v Gawker Legal FAQ - In Their Lawyers&#039; Words &#124; Litigation &#38; Trial Lawyer Blog]]></dc:creator>
		<pubDate>Thu, 26 May 2016 15:25:34 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336597</guid>

					<description><![CDATA[[&#8230;] If we take Thiel’s comments at face value, then there really is no issue here. Thiel has more than enough lawyers to structure a funding arrangement in an appropriate way, and his personal reasons for funding the case and his own belief that he doesn’t “expect to make any money from this” don’t change the underlying legality of the investment. Litigation funding has grown remarkably in the past few years, and has enabled plaintiffs to truly take on giants, including taking on the tobacco companies in Florida. If you want to know more about this subject, you can read Walter Olson’s take and my comments at Overlawyered. [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] If we take Thiel’s comments at face value, then there really is no issue here. Thiel has more than enough lawyers to structure a funding arrangement in an appropriate way, and his personal reasons for funding the case and his own belief that he doesn’t “expect to make any money from this” don’t change the underlying legality of the investment. Litigation funding has grown remarkably in the past few years, and has enabled plaintiffs to truly take on giants, including taking on the tobacco companies in Florida. If you want to know more about this subject, you can read Walter Olson’s take and my comments at Overlawyered. [&#8230;]</p>
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		<title>
		By: jdgalt		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336570</link>

		<dc:creator><![CDATA[jdgalt]]></dc:creator>
		<pubDate>Wed, 25 May 2016 18:59:32 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336570</guid>

					<description><![CDATA[Does a plaintiff&#039;s lawyer offering to work on a contingency basis qualify as champerty?  How about a fund started on Kickstarter (or similar) to fund a lawsuit?  Does it matter if the fund is for the plaintiff or the defendant?

I would be against laws restricting these practices unless the notion of standing were reexamined and broadened.  It excludes too many people now (as in the case about that California anti-gay-marriage proposition that its authors were found not to have standing to defend).]]></description>
			<content:encoded><![CDATA[<p>Does a plaintiff&#8217;s lawyer offering to work on a contingency basis qualify as champerty?  How about a fund started on Kickstarter (or similar) to fund a lawsuit?  Does it matter if the fund is for the plaintiff or the defendant?</p>
<p>I would be against laws restricting these practices unless the notion of standing were reexamined and broadened.  It excludes too many people now (as in the case about that California anti-gay-marriage proposition that its authors were found not to have standing to defend).</p>
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		By: Silicon Valley billionaire Peter Thiel's attack on Gawker on behalf of Hulk Hogan is called "champerty," and it used to be illegal — Quartz		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336569</link>

		<dc:creator><![CDATA[Silicon Valley billionaire Peter Thiel's attack on Gawker on behalf of Hulk Hogan is called "champerty," and it used to be illegal — Quartz]]></dc:creator>
		<pubDate>Wed, 25 May 2016 17:57:44 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336569</guid>

					<description><![CDATA[[&#8230;] against a media company by someone with the money to drive a company to ruin through litigation. (Some lawyers have speculated that Thiel&#8217;s lawsuit sponsorship is technically called &#8220;maintenance&#8221; if he [&#8230;]]]></description>
			<content:encoded><![CDATA[<p>[&#8230;] against a media company by someone with the money to drive a company to ruin through litigation. (Some lawyers have speculated that Thiel&rsquo;s lawsuit sponsorship is technically called &ldquo;maintenance&rdquo; if he [&#8230;]</p>
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		<title>
		By: Turk		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336568</link>

		<dc:creator><![CDATA[Turk]]></dc:creator>
		<pubDate>Wed, 25 May 2016 17:31:17 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336568</guid>

					<description><![CDATA[The problem with outlawing litigation funding, of which this appears to be a type, is that it may effectively close the courthouse doors to those litigants (and lawyers) of modest means.

Is there the potential for abuse? Sure, but so is the alternative where wealthy litigants (such as insurance companies) can put the screws to the injured who may be out of work and desperate.

Litigation funding generally sucks, due to very high fees. But it also, to some degree, levels the playing field.]]></description>
			<content:encoded><![CDATA[<p>The problem with outlawing litigation funding, of which this appears to be a type, is that it may effectively close the courthouse doors to those litigants (and lawyers) of modest means.</p>
<p>Is there the potential for abuse? Sure, but so is the alternative where wealthy litigants (such as insurance companies) can put the screws to the injured who may be out of work and desperate.</p>
<p>Litigation funding generally sucks, due to very high fees. But it also, to some degree, levels the playing field.</p>
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		<title>
		By: Max Kennerly		</title>
		<link>https://www.overlawyered.com/2016/05/champerty-maintenance-explainer-gawkerhoganthiel-edition/comment-page-1/#comment-336567</link>

		<dc:creator><![CDATA[Max Kennerly]]></dc:creator>
		<pubDate>Wed, 25 May 2016 17:15:50 +0000</pubDate>
		<guid isPermaLink="false">http://overlawyered.com/?p=59412#comment-336567</guid>

					<description><![CDATA[Ironically, I think Mr. Olson and I agree on the specifics, but disagree on the generalities.

On the generalities, Mr. Olson sees huge potential for misconduct and chicanery, and a whole world of needless and punitive litigation. I see the great majority of lawsuit loans and litigation funding as having very little effect on the extent of litigation, except to enable plaintiffs with meritorious cases to properly pursue them in light of the time and expense necessary for litigation, which ordinary plaintiffs often can&#039;t bear.

On the specifics, I see Mr. Olson&#039;s concern about &quot;candor to the tribunal&quot; being the same as my concern regarding client control of the litigation. If the litigation funder has simply put forward capital for costs in exchange for a portion of the proceeds, there&#039;s no big issue. If, however, the plaintiff has effectively assigned the claim away to the litigation funder, then we do indeed have a problem with the nominal plaintiff not actually being the real party in interest.

That&#039;s my concern with the Hogan case. It does not look like a typical case worthy of litigation financing, not least because defamation/privacy lawsuits are very rarely funded at all because of their extreme risk, and also because the funder in question is not someone typically engaged in litigation financing, and who has apparent motivation for maintaining an unnecessary claim beyond the point where it should have resolved. On the flipside, however, the extraordinary size of the jury verdict would suggest that perhaps the funder here knows better than most, and correctly identified a high value privacy case that was worthy of pursuit.

All of which is to say, this particular case certainly raises my eyebrows just the same as Mr. Olson&#039;s. But it is an outlier, and I don&#039;t think it should be used as a vehicle to impair typical plaintiffs&#039; pursuit of appropriate redress in the courts.]]></description>
			<content:encoded><![CDATA[<p>Ironically, I think Mr. Olson and I agree on the specifics, but disagree on the generalities.</p>
<p>On the generalities, Mr. Olson sees huge potential for misconduct and chicanery, and a whole world of needless and punitive litigation. I see the great majority of lawsuit loans and litigation funding as having very little effect on the extent of litigation, except to enable plaintiffs with meritorious cases to properly pursue them in light of the time and expense necessary for litigation, which ordinary plaintiffs often can&#8217;t bear.</p>
<p>On the specifics, I see Mr. Olson&#8217;s concern about &#8220;candor to the tribunal&#8221; being the same as my concern regarding client control of the litigation. If the litigation funder has simply put forward capital for costs in exchange for a portion of the proceeds, there&#8217;s no big issue. If, however, the plaintiff has effectively assigned the claim away to the litigation funder, then we do indeed have a problem with the nominal plaintiff not actually being the real party in interest.</p>
<p>That&#8217;s my concern with the Hogan case. It does not look like a typical case worthy of litigation financing, not least because defamation/privacy lawsuits are very rarely funded at all because of their extreme risk, and also because the funder in question is not someone typically engaged in litigation financing, and who has apparent motivation for maintaining an unnecessary claim beyond the point where it should have resolved. On the flipside, however, the extraordinary size of the jury verdict would suggest that perhaps the funder here knows better than most, and correctly identified a high value privacy case that was worthy of pursuit.</p>
<p>All of which is to say, this particular case certainly raises my eyebrows just the same as Mr. Olson&#8217;s. But it is an outlier, and I don&#8217;t think it should be used as a vehicle to impair typical plaintiffs&#8217; pursuit of appropriate redress in the courts.</p>
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