Posted in Finance, Accounting and Economics Terms, Total Reads: 228
I. In maritime commerce, an illegal act in which the captain or crew of a ship damages the transaction. Transaction includes trading of cargo etc.
II. Barratry is an illegal act in which lawyer files groundless lawsuit to claim money from the client.
I. Barratry is a risk associated with transaction in case of maritime commerce. Examples include stealing cargo or throwing it overboard. Responsibility for the risk goes to buyer or seller depending on the shipping agreement.
II. In an illegal practice, lawyers try to instigate a dispute or to encourage filing of lawsuit in order to collect legal fees from the client. The lawyer found guilty of barratry is would generally face disbarment and this is a common practice in the US.