Hendry v Chartsearch Ltd [1998] EWCA Civ 1276 (23 July 1998)

Hendry v Chartsearch Ltd [1998] EWCA Civ 1276 (23 July 1998)

Assignments of contractual rights requiring prior written consent are ineffective against the debtor if such consent is not obtained, regardless of whether consent could have been reasonably withheld. Leave to amend pleadings to include post-writ assignments may be granted at the court's discretion. The claim for inducing breach of contract was not struck out as the assignment was not a sham and the issue of damages could be further pleaded.

Citation
[1998] EWCA Civ 1276
Parties
Appellant/plaintiff: Hendry; Respondent/defendant: Chartsearch Limited
Jurisdiction
England and Wales
Judgment Date
23 July 1998
Procedural Posture
Civil Appeal / Appeal From Bristol Mercantile Court Judgment on Strike Out Application
Outcome
Appeal dismissed except as to exploitation agreement; cross-appeal dismissed.
Legal Topics
Assignment of Contractual Rights, Consent to Assignment, Security for Costs, Legal Aid Eligibility, Inducement of Breach of Contract, Leave to Amend Pleadings
Contract Law Tort Law Civil Procedure Assignment of Contractual Rights Consent to Assignment Security for Costs Legal Aid Eligibility Inducement of Breach of Contract +1 more

Case Brief

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Parties

Hendry

Appellant/plaintiff

Chartsearch Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From Bristol Mercantile Court Judgment on Strike Out Application

Legal Issues

  1. 1 Whether claims as assignee under Samms and Namebank Agreements should be struck out for lack of prior written consent to assignment
  2. 2 Whether leave should be granted to re-amend the Statement of Claim to plead post-writ assignment under the exploitation agreement
  3. 3 Whether claim for inducing breach of employment contracts should be struck out

Ratio Decidendi

Assignments of contractual rights requiring prior written consent are ineffective against the debtor if such consent is not obtained, regardless of whether consent could have been reasonably withheld. Leave to amend pleadings to include post-writ assignments may be granted at the court's discretion. The claim for inducing breach of contract was not struck out as the assignment was not a sham and the issue of damages could be further pleaded.

Court Disposition

Appeal dismissed except as to exploitation agreement; cross-appeal dismissed.

Orders

  • Leave granted to re-amend Statement of Claim regarding exploitation agreement assignment.
  • Claims as assignee under Samms and Namebank Agreements struck out for lack of prior written consent.