Stopjoin Projects Ltd v Balfour Beatty Engineering Services (HY) Ltd

Stopjoin Projects Ltd v Balfour Beatty Engineering Services (HY) Ltd

The assignment claim in respect of the Portwall Lane contract is struck out or summary judgment entered for Balfour Beatty because the anti-assignment clause was not waived or deleted and no effective assignment occurred. However, the claim based on an implied trust is not struck out as it has a real prospect of success, given the business relationship, consideration, and the possibility of implying a trust to give effect to the parties' intentions.

Parties
Claimant/respondent: Stopjoin Projects Limited; First Defendant/applicant: Balfour Beatty Engineering Services (HY) Limited; Second Defendant: Brunel Control Systems Limited
Jurisdiction
England and Wales
Judgment Date
13 January 2014
Procedural Posture
Civil (commercial/construction) / Application for Strike Out And/or Summary Judgment
Outcome
Claim based on assignment struck out/summary judgment for defendant; claim based on implied trust proceeds to trial.
Legal Topics
Assignment of Contractual Rights, Anti Assignment Clauses, Implied Trusts, Summary Judgment, Factoring of Receivables
Contract Law Equity Commercial Law Assignment of Contractual Rights Anti Assignment Clauses Implied Trusts Summary Judgment Factoring of Receivables

Case Brief

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Parties

Stopjoin Projects Limited

Claimant/respondent

Balfour Beatty Engineering Services (HY) Limited

First Defendant/applicant

Brunel Control Systems Limited

Second Defendant

Procedural Posture

Civil (commercial/construction) / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether the assignment of book debts to the claimant was effective in light of an anti-assignment clause
  2. 2 Whether an implied trust arises in favour of the claimant permitting it to sue as beneficiary
  3. 3 Whether the claimant's claim should be struck out or allowed to proceed to trial

Ratio Decidendi

The assignment claim in respect of the Portwall Lane contract is struck out or summary judgment entered for Balfour Beatty because the anti-assignment clause was not waived or deleted and no effective assignment occurred. However, the claim based on an implied trust is not struck out as it has a real prospect of success, given the business relationship, consideration, and the possibility of implying a trust to give effect to the parties' intentions.

Court Disposition

Claim based on assignment struck out/summary judgment for defendant; claim based on implied trust proceeds to trial.

Orders

  • Claim based on assignment in respect of the Portwall Lane contract is struck out or summary judgment entered for Balfour Beatty.
  • Application to strike out/dismiss the claim based on implied trust is dismissed; that claim may proceed.