ALEX LAWRIE FACTORS LTD v. MITCHELL ENGINEERING LTD [2000] ScotSC 28 (31st October, 2000)

ALEX LAWRIE FACTORS LTD v. MITCHELL ENGINEERING LTD [2000] ScotSC 28 (31st October, 2000)

The assignee of contractual rights is not liable for damages arising from breach by the assignor unless the assignation expressly includes liabilities. The defenders may plead retention or compensation to extinguish the assignee's claim, but a counterclaim for damages in excess of the assigned debt is incompetent against the assignee.

Citation
[2000] ScotSC 28
Parties
Pursuer: Alex Lawrie Factors Ltd; Defender: Mitchell Engineering Ltd
Jurisdiction
Scotland
Procedural Posture
Commercial Contract Dispute / Debate on Competency and Relevancy of Counterclaim
Outcome
counterclaim dismissed
Legal Topics
Assignment of Contractual Rights, Liability of Assignee, Counterclaim Competency, Retention and Compensation
Contract Law Assignment of Debts Assignment of Contractual Rights Liability of Assignee Counterclaim Competency Retention and Compensation

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 3 Authorities cited 8 Party arguments 2
Sign in to unlock

Parties

Alex Lawrie Factors Ltd

Pursuer

Mitchell Engineering Ltd

Defender

Procedural Posture

Commercial Contract Dispute / Debate on Competency and Relevancy of Counterclaim

Legal Issues

  1. 1 Whether an assignee of contractual rights is liable for damages arising from breach by the assignor
  2. 2 Whether a counterclaim for damages in excess of the assigned debt is competent against the assignee

Ratio Decidendi

The assignee of contractual rights is not liable for damages arising from breach by the assignor unless the assignation expressly includes liabilities. The defenders may plead retention or compensation to extinguish the assignee's claim, but a counterclaim for damages in excess of the assigned debt is incompetent against the assignee.

Court Disposition

counterclaim dismissed

Orders

  • case put out by order for discussion on further procedure