Ehrlich v. Rebco Insurance Exchange, Ltd.

OPINION OF THE COURT

Sullivan, J.

This appeal presents the issue of whether the assignment of a claim specifically and expressly for the sole purpose of commencing an action or asserting a counterclaim thereon falls outside Judiciary Law § 489’s prohibition against champertous assignments merely because the assignment occurred after the commencement of the action in which the claim is interposed. We hold that such an assignment violates the statute.

In September 1988, plaintiff, an attorney, commenced this action to recover for a breach of a written agreement, pursuant to which plaintiff was…