I came across this article at Findlaw.com — written by Professor Anthony J. Sebok — concerning a recent New York Supreme Court case in which the plaintiff had received money from a non-party company that invested in the probability of the plaintiff recovering on his Labor Law sec. 240(1) claim.  Professor Sebok raises numerous cogent points on the peculiar interest Justice Warshawsky had concerning the arrangement between the plaintiff and the non-party Lawcash — especially the large return on the company’s investment within one year’s time (2 -4 % compounded monthly).  However, I still have a visceral reaction to a non-party loaning money to a party in an action, thereby frustrating any chance of settlement.

My first reaction was to scream champerty, but Professor Sebok clarified that point; nevertheless, I’m still troubled about the possibility that a non-party can somehow fund a party to continue an action he or she might otherwise be unable to pursue.