Court Says Champerty Can't Curb Debt Buyers' Rights

By Jacqueline Bell

Law360, New York (October 16, 2009, 6:11 PM ET) -- Reassuring the secondary loan market, the New York Court of Appeals has issued a ruling clarifying the limits of the state's arcane champerty law, ruling that the age-old law with roots in medieval Europe was not designed to curb the ability of buyers of distressed debt to enforce their rights through litigation and collect on a legitimate claim.

In a ruling issued by the New York Court of Appeals Thursday, the state appeals court completed a request from the U.S. Court of Appeals for the Second...
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