James Scott Ltd v Apollo Engineering Ltd & Ors [2000] ScotCS 18 (24 January 2000)

James Scott Ltd v Apollo Engineering Ltd & Ors [2000] ScotCS 18 (24 January 2000)

The prohibition on assignation in the contract prevents the assignment of all rights, including accrued monetary claims, without the pursuers' consent. The presence of a liquidator does not alter this position, and there is no public policy reason to override the contractual prohibition.

Citation
[2000] ScotCS 18
Parties
Pursuer: James Scott Limited; Defender: Apollo Engineering Limited and Others; Minuter/applicant: Adquest (the Minuters)
Jurisdiction
Scotland
Judgment Date
24 January 2000
Procedural Posture
Commercial Contract Dispute / Motion to Sist Minuter as Defender
Outcome
Motion refused
Legal Topics
Assignation of Contractual Rights, Prohibition of Assignment Clauses, Liquidation and Asset Disposal, Public Policy in Contract Enforcement
Contract Law Insolvency Law Assignation of Contractual Rights Prohibition of Assignment Clauses Liquidation and Asset Disposal Public Policy in Contract Enforcement

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Parties

James Scott Limited

Pursuer

Apollo Engineering Limited and Others

Defender

Adquest (the Minuters)

Minuter/applicant

Procedural Posture

Commercial Contract Dispute / Motion to Sist Minuter as Defender

Legal Issues

  1. 1 Whether a contractual prohibition on assignation prevents the assignment of accrued monetary claims without consent
  2. 2 Whether a liquidator's powers override contractual restrictions on assignation
  3. 3 Whether such prohibitions are contrary to public policy

Ratio Decidendi

The prohibition on assignation in the contract prevents the assignment of all rights, including accrued monetary claims, without the pursuers' consent. The presence of a liquidator does not alter this position, and there is no public policy reason to override the contractual prohibition.

Court Disposition

Motion refused

Orders

  • Refused the motion to sist the Minuter as defender
  • Granted leave to reclaim