Barratry

AAA

DEFINITION of 'Barratry'

An illegal act whereby an attorney instigates a dispute or otherwise encourages the filing of a lawsuit, in order to profit from legal fees. Barratry typically involves the filing of a groundless claim in order to receive payment from clients. It is an illegal practice in all U.S. states and subject to criminal punishment and discipline by the state bar. An attorney found guilty of barratry would generally face disbarment.

INVESTOPEDIA EXPLAINS 'Barratry'

Barratry refers to an attorney's illegal instigation of lawsuits with no legitimate claim. For barratry to be a criminal act, the accused must perform repeated and persistent acts of litigation. It is against the law for an attorney to look for accident victims in hospitals or at home in an attempt to solicit business. Such "ambulance chasers" could be found guilty of barratry.

RELATED TERMS
  1. Bottomry

    When the owner of a ship borrows money and uses the ship itself ...
  2. Admiralty Court

    Any court governed by admiralty law, whether the court is officially ...
  3. Maritime Law

    A body of laws, conventions and treaties that governs international ...
  4. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  5. Incoterms

    Trade terms published by the International Chamber of Commerce ...
  6. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
Related Articles
  1. Insurance

    Are You Trying To Get Sued?!

    Organizational lawsuits are commonplace these days. Knowing how to react to and (more importantly) prevent them can save your business.
  2. Options & Futures

    Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street

    From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street.
  3. Personal Finance

    How To Pick The Right Lawyer

    Find out what factors to consider before hiring an attorney.
  4. Entrepreneurship

    Government Regulations: Do They Help Businesses?

    These rules are in place to protect consumers and help businesses thrive at the same time.
  5. Professionals

    Why Celebrity Lawyers Make The Big Bucks

    These lawyers take on high-profile, high-stress celebrity cases and are compensated well for it.
  6. Taxes

    Tax Court: Your Last Resort

    Appealing an unfavorable or unfair tax ruling may be your last chance to save your finances.
  7. Investing Basics

    How do regulators ensure that markets are conducted at arm's length?

    Learn about arm's length transactions and how the Investment Advisers Act allows stockbrokers to sell securities based on suitability reviews.
  8. Economics

    America's Most Notorious Corporate Criminals

    Learn about the crimes and punishments of some of the most infamous convicted white-collar crooks.
  9. Investing

    What's the difference between legal defalcation and illegal defalcation?

    Discover what is meant by the term ''defalcation'' and how it can be used in multiple contexts to describe illegal or legal activities.
  10. Investing News

    Educating Your Clients About Cybersecurity

    Financial advisors must lead the charge against cybersecurity risks, for their clients and for their own practices.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center