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BLUEBIRD v. FIRST FID. BANK

94 N.Y.2d 726 (2000)

731 N.E.2d 581

709 N.Y.S.2d 865

BLUEBIRD PARTNERS, L.P., Appellant, v. FIRST FIDELITY BANK, N. A., et al., Defendants, and UNITED JERSEY BANK, Respondent. (And Another Action.) (And a Third-Party Action.)

Court of Appeals of the State of New York.

Decided May 11, 2000.

Attorney(s) appearing for the Case

Kasowitz, Benson, Torres & Friedman, L. L. P., New York City (David M. Friedman, Michael C. Harwood and Howard W. Schub of counsel), and Henry Paul Monaghan for appellant.

Kaye, Scholer, Fierman, Hays & Handler, L. L. P., New York City (Lester M. Kirshenbaum and Gregory R. Fidlon of counsel), for respondent.

Chief Judge KAYE and Judges SMITH, LEVINE, CIPARICK, WESLEY and ROSENBLATT concur.

OPINION OF THE COURT

BELLACOSA, J.

Champerty is a venerable doctrine developed hundreds of years ago to prevent or curtail the commercialization of or trading in litigation. It is currently codified in New York as Judiciary Law § 489. In this case, the statute's evocation as an affirmative defense attempts to squeeze the ancient prohibition into a modern financial transaction and its resulting dispute...

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