The creditor had assigned the debt, but without first giving the debtor defendant the necessary notice. A challenge was made to the ability of the assignee to bring the action, saying that the deed of trust appointed to circumvent the reluctance of the original creditors to sue was invalid without such consent since the assignment which might justify it was itself invalid.
Held: The declaration of trust was not itself an equitable assignment so as to be caught by the prohibition on assignment without notice. The issue of who might be able to sue was procedural, and was not ‘a measure of substantive law which might affect the asset, the subject of the declaration of trust.’ The appeal was allowed.
Judges:
Waller LJ, President, Rix LJ, Hooper LJ
Citations:
[2007] EWCA Civ 148, [2007] 1 Lloyd’s Rep 495
Links:
Statutes:
Jurisdiction:
England and Wales
Citing:
Cited – Vandepitte v Preferred Accident Insurance Corp. of New York PC 1933
The plaintiff was injured in a motor accident. He failed in a direct claim against the insurers of the negligent defendant driver. The insurance was effected by the father (Mr Berry) of the negligent driver and provided that an indemnity would be . .
Cited – The Argo Fund Ltd v Essar Steel Ltd ComC 26-Jan-2004
. .
Cited – The Argo Fund Ltd v Essar Steel Ltd ComC 12-Apr-2005
. .
Cited – Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd and Others; St. Martins Property Corporation Ltd v Sir Robert McAlpine HL 8-Dec-1993
A contractor had done defective work in breach of a building contract with the developer but the loss was suffered by a third party who had by then purchased the development. The developer recovered the loss suffered by the purchaser.
Held: . .
Appeal from – Barbados Trust Company Ltd v Bank of Zambia and Another ComC 22-Feb-2006
. .
Cited – Don King Productions Inc v Warren and Others ChD 13-Apr-1998
Where partnership terms required benefit of all contracts to be assigned to the partnership, this included unassignable personal contracts which were to be held in trust for partnership, unless stated otherwise.
Lightman J said: ‘The existence . .
Cited – Target Holdings Ltd v Redferns (A Firm) and Another HL 21-Jul-1995
The defendant solicitors had acted for a purchaser, Crowngate, which had agreed to buy a property from a company called Mirage for andpound;775,000. Crowngate had arranged however that the property would first be passed through a chain of two . .
Cited – Saunders v Vautier 7-May-1841
A direction in a will stated that the income from certain shares was to be accumulated and invested until the beneficiary attained the age of 25. On attaining his majority at 21 years, the beneficiary sought termination of the trust, and transfer of . .
Cited – Ambler v Bolton CA 1872
An inalienable government contract held by one of the partners constituted a partnership asset. On the dissolution of the partnership, a value had to be given to it (since it could not be sold) and the partner who held it debited with that amount in . .
Cited – Re Turcan CA 1888
A man effected an insurance policy which contained a term that it should not be assignable in any case whatever. He had previously covenanted with trustees to settle after-acquired property.
Held: The court will seek to protect the interests . .
Cited – R W Pathirana v A Pathirana PC 1967
Section 29 requires a partner to account to the partnership for any private benefit which he derives at the expense of the partnership, and this duty subsists after the dissolution of the partnership until the winding up is completed. An inalienable . .
Cited – In Re Brockbank 1948
A new trustee was to be appointed. The beneficiaries, all of full age and capacity wanted the remaining trustee to appoint someone they nominated. The trustee purported to exercise the discretion given to him in the trust deed and appointed someone . .
Cited – Explora Group Plc v Hesco Bastion Ltd and Another CA 20-Jul-2005
. .
Cited – Target Holdings Ltd v Redferns (A Firm) and Another HL 21-Jul-1995
The defendant solicitors had acted for a purchaser, Crowngate, which had agreed to buy a property from a company called Mirage for andpound;775,000. Crowngate had arranged however that the property would first be passed through a chain of two . .
Cited – Don King Productions Inc v Warren; Roberts; Centurion Promotions Limited (Formerly Sports Network Limited); Sports Network Usa, Inc; Time Warner Entertainment Company, Lp and Sport International, Inc CA 19-Nov-1998
Contracts between the members of a firm and third parties, and which were subject to the partnership contract, but which were expressed to be personal and incapable of assignment, were still held on trust for the partnership, and renewals made . .
Cited – Ellis v Torrington CA 1920
An assignment of the benefit of a covenant in a lease held to be sufficiently connected with enjoyment of the property as not to be a bare right of action. The assignment was not void.
Scrutton LJ stated that the assignee of a cause of action . .
Cited – Essar Steel Ltd v The Argo Fund Ltd CA 14-Mar-2006
The parties disputed the effect of provisions of an unsecured syndicated loan in standard 1997 Loan Market Association form. . .
Cited – Tom Shaw and Co v Moss Empires Ltd 1908
An actor, was engaged by Moss Empires under a contract which prohibited the assignment of his salary. He assigned 10 per cent of the salary to his agent, Tom Shaw. Tom Shaw sued Moss Empires for 10 per cent of the salary joining the actor as second . .
Cited – Harmer v Armstrong CA 1934
The court considered the position where the assignor of a contract was required to attend court as a party when the assignee sought to enforce the debt.
Held: A beneficiary under a bare trust could bring proceedings in his own name and, where . .
Cited – Performing Right Society Limited v London Theatre of Varieties Limited HL 1924
The parties, the plaintiff who was the equitable assignee of performing rights and the infringing defendant, joined specific issue on the absence of the legal owner of the rights.
Held: His absence was critical. PRS failed to obtain a . .
Lists of cited by and citing cases may be incomplete.
Banking, Contract
Updated: 09 July 2022; Ref: scu.249235
