Domson P/L and 6 Ors v Zhu and 1 Or

Domson P/L and six other plaintiffs brought an action against Zhu and another defendant, seeking to enforce a contract for litigation funding. The defendants argued that the agreement was illegal under the doctrine of champerty, as it involved funding litigation in return for a percentage of the proceeds. The dispute reached the court, which was required to determine the enforceability of the agreement under the champerty doctrine and whether the litigation funder had a legitimate interest in the new agreement. The court analysed the legal framework surrounding champerty and examined the circumstances of the agreements between the parties. It found that the new agreement was not within the statutory exception to champerty and that the litigation funder did not have a legitimate interest in the new agreement by reason of the preceding enforceable agreement with the administrator. The court held that the new agreement was enforceable as it did not fall within the statutory exception to champerty and that the litigation funder had a legitimate interest in the new agreement by reason of the preceding enforceable agreement with the administrator. The court's decision was based on the construction of the new agreement and the specific circumstances of the case. The final orders of the court were not detailed in the provided text, but the court's decision upheld the enforceability of the new agreement.