The High Court has ruled that champerty offends the rules of public policy. The Court held that professional third party funding, by an entity that has no independent or bona fide interest, for a share of the profits, is prohibited.
This is the first case in Ireland directly concerning the acceptability of professional third party litigation funding.
Persona Digital Telephony Ltd. and Sigma Wireless Networks Ltd. sought a declaration that entering into an agreement with Harbour Fund III Limited Partnership is not an abuse of process, and, or does not breach the rules on maintenance and champerty.
The case relates to the awarding of the second GSM mobile telephone licence to ESAT Telephone Ltd. by the Minister for Public Enterprise. Persona Digital Telphony Ltd. and Sigma Wireless Networks Ltd., unsuccessful in the competition process, are impecunious as a result.
The third party entity, Harbour III and Harbour Litigation Fund were incorporated in 2015 as a limited partnership in the Cayman Islands with a fund of £230 Sterling to invest in commercial litigation worldwide.
The Court found that maintenance and champerty continue to be torts and offences in Ireland. The Court also found that it could not develop the ingredients of a statutory offence in a manner that fundamentally changes the nature of the offence.
Persona Digital Telphony Ltd. and Sigma Wireless Networks Ltd. were seeking damages, including exemplary damages, for misfeasance in public office, breach of duty, including legitimate expectations, constitutional rights, rights under European Union Law and a declaration that the European Communities (Mobiles and Personal Communications) Regulation, 1996, breach European Union law.
This is the first case in Ireland directly concerning the acceptability of professional third party litigation funding.
Persona Digital Telephony Ltd. and Sigma Wireless Networks Ltd. sought a declaration that entering into an agreement with Harbour Fund III Limited Partnership is not an abuse of process, and, or does not breach the rules on maintenance and champerty.
The case relates to the awarding of the second GSM mobile telephone licence to ESAT Telephone Ltd. by the Minister for Public Enterprise. Persona Digital Telphony Ltd. and Sigma Wireless Networks Ltd., unsuccessful in the competition process, are impecunious as a result.
The third party entity, Harbour III and Harbour Litigation Fund were incorporated in 2015 as a limited partnership in the Cayman Islands with a fund of £230 Sterling to invest in commercial litigation worldwide.
The Court found that maintenance and champerty continue to be torts and offences in Ireland. The Court also found that it could not develop the ingredients of a statutory offence in a manner that fundamentally changes the nature of the offence.
Persona Digital Telphony Ltd. and Sigma Wireless Networks Ltd. were seeking damages, including exemplary damages, for misfeasance in public office, breach of duty, including legitimate expectations, constitutional rights, rights under European Union Law and a declaration that the European Communities (Mobiles and Personal Communications) Regulation, 1996, breach European Union law.
