BATEY V JEWSON

[2008] EWCA Civ 18, Court of Appeal, Lord Justice Mummery, Lord Justice Jacob and Mr Justice Mann, 29 January 2008

Assignment – Claimant too assignment of “any sums of money recoverable” from defendant – Whether claimant was assignee of the cause of action or merely assignee of the proceeds of the claim

B was a shareholder in a company, SL, which purchased roof trusses from J. SL alleged that the roof trusses were defective and made a claim for damages. Subsequently SL assigned to B “any sums of money recoverable from the dispute with [J] in lieu of wages owing”. The assignment was notified to J on 30 July 2004. In the meantime, B ordered goods from J in his own name. J commenced proceedings against B for the unpaid purchase price, and B served a set off and counterclaim arising out of the contract for the supply of roof trusses to SL. J asserted that the cause of action remained with SL and that SL had simply assigned the proceeds of the action rather than the action itself, so that the counterclaim was invalid. The Court of Appeal held that, looked at in its commercial context, the assignment was of the cause of action so that the counterclaim could be made. At the time of the assignment SL was in the process of selling its assets and settling its debts with a view to a solvent winding up. The Court of Appeal remitted to the lower court the determination of the issue whether the contract between SL and J contained an anti-assignment clause.