Justinian Capital SPC, for and on Behalf of Blue Heron Segregated Portfolio, Appellant v. WestLB AG, New York…

Summary

The New York Court of Appeals affirmed the Appellate Division, holding that Justinian Capital SPC's purchase of the notes was champertous as a matter of law and that the transaction did not qualify for the statutory safe‑harbor because no actual payment or binding obligation of at least $500,000 was made. The court applied the primary‑purpose test from Moses v. McDivitt and interpreted Judiciary Law § 489(2) to require a bona fide payment or obligation. Accordingly, the summary‑judgment dismissal was upheld.