Brief Fact Summary. The Plaintiff and assignee, Dr. John Herzog (Plaintiff), sued the Defendants and obligors, Anthony Irace and Donald Lowry (Defendants), to enforce an assignment made by the assignor Gary Jones (Jones).
Synopsis of Rule of Law. An assignment is valid and enforceable if the assignor makes clear his intent to relinquish a right to the assignee and does not retain any control over the right assigned or any power of revocation.
For an assignment to be valid and enforceable the assignor must make clear his intent to relinquish the right to the assignee and must not retain any control over the right assigned or any power of revocation.
View Full Point of LawIssue. Did the Defendants’ client properly assign his right to payment to the Plaintiff?
Held. Yes. An assignment is valid and enforceable if the assignor makes clear his intent to relinquish a right to the assignee and does not retain any control over the right assigned or any power of revocation. Once one receives notice of an assignment, he cannot lawfully pay to the assignor the amount assigned and the assignee may enforce the obligation against the obligor. In the present case, the assignor wrote a letter assigning payment to the Plaintiff. The letter gives no indication of an attempt by the assignor to retain control over the funds. Thus, the assignment is valid and enforceable.
Discussion. An assignment must be a complete relinquishment of a right, without any retained control, to be valid.