Pegasus v Ernst & Young [2012] EWHC 738 (Ch) (23 March 2012)

Pegasus v Ernst & Young [2012] EWHC 738 (Ch) (23 March 2012)

Assignment of assets and cause of action does not extinguish the assignor's loss; the assignee may claim for the assignor's loss, and the loss does not disappear upon assignment, regardless of whether the loss is direct or consequential. The appeal is dismissed and amendment to substitute IHUK is allowed.

Citation
[2012] EWHC 738 (Ch)
Parties
Claimant: Pegasus; Defendant: Ernst & Young
Jurisdiction
England and Wales
Judgment Date
23 March 2012
Procedural Posture
Appeal / Appeal From Master's Decision on Amendment and Strike Out Applications
Outcome
Appeal dismissed; amendment to substitute IHUK as claimant allowed.
Legal Topics
Negligence, Assignment of Causes of Action, Damages, Loss Assessment, Tax Consequences
Tort Contract Company Law Negligence Assignment of Causes of Action Damages Loss Assessment Tax Consequences

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Pegasus

Claimant

Ernst & Young

Defendant

Procedural Posture

Appeal / Appeal From Master's Decision on Amendment and Strike Out Applications

Legal Issues

  1. 1 Whether IHUK can maintain a claim for loss after Pegasus assigned its cause of action and assets
  2. 2 Whether Pegasus's loss disappears upon assignment of assets and cause of action
  3. 3 Assessment of loss in negligence claims involving asset transfers

Ratio Decidendi

Assignment of assets and cause of action does not extinguish the assignor's loss; the assignee may claim for the assignor's loss, and the loss does not disappear upon assignment, regardless of whether the loss is direct or consequential. The appeal is dismissed and amendment to substitute IHUK is allowed.

Court Disposition

Appeal dismissed; amendment to substitute IHUK as claimant allowed.

Orders

  • IHUK substituted as claimant in place of Pegasus.
  • Point decided binds parties at trial.