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Defendant completed five transactions in Ireland. The five creditors assigned their accounts to Plaintiff. Plaintiff wishes to sue Defendant in bankruptcy and remove him from his position as director and general manager of a company Plaintiff has interest in.
Synopsis of Rule of Law.
The right to receive monies under a contract is similar to property; it can be given away or assigned.
Facts.
Five of Defendant’s debts were assigned to Plaintiff. Plaintiff has interest in and is a director of a company, in which Defendant is the director and general manager. Plaintiff, being dissatisfied with Defendant’s performance, and wished to sue him in bankruptcy and take over his position.
Issue.
Can Defendant’s creditors assign Plaintiff Defendant’s debts?
Held.
Yes.
The right to receive money is like a piece of property. It can be bought and sold or placed in trust or with a bailee.
Discussion.
This case established that the right to money under a contract could be assigned. In this case, Plaintiff’s intentions were not, exactly honorable. He was trying to get rid of Defendant as director and general manager of the company. He, most likely, approached the creditors and bought the assignments for more that Defendant owed so he could become Defendant’s creditor and get Defendant’s interest in the company.
