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Del. Court OKs Litigation Finance In DuPont IP Case

Law360, Washington (March 9, 2016, 8:47 PM EST) -- A Delaware court ruled Wednesday that the use of litigation finance did not disqualify an intellectual property suit against DuPont Co., rejecting the chemical giant’s argument that Charge Injection Technologies Inc. ran afoul of a law against champerty.

The state law forbidding champerty and maintenance is based on a principle dating back to medieval England meant to discourage the financing of a disinterested party to pursue frivolous litigation, usually against the financier’s rival, Superior Court President Judge Jan R. Jurden said. In this case, CIT’s was not a “maintainer” on behalf of litigation financier Burford Capital LLC, but had its own...

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