Non-property assets do not pass on bankruptcy
An action was brought on a contract for hiring and service, where the plaintiff was to serve for seven years, and the defendant to pay weekly wages during that time; and the breach was a dismissal during the seven years. The plaintiff, after this breach, and before the commencement of the action, became bankrupt; and the question was, whether this cause of action passed from the plaintiff to his assignees.
Held: Lord Mansfield said: ‘The general principle is, that all rights of the bankrupt which can be exercised beneficially for the creditors do so pass, and the right to recover damages may pass though they are unliquidated . . This principle is subject to exception. The right of action does not pass where the damages are to be estimated by immediate reference to pain felt by the bankrupt in respect of his body, mind or character, and without immediate reference to his rights of property. Thus it has been laid down that the assignees cannot sue for breach of promise of marriage, for criminal conversation, seduction, defamation, battery, injury to the person by negligence, as by not carrying safely, not curing, not saving from imprisonment by process of law . .’
Judges:
Lord Mansfield, Erle CJ
Citations:
[1849] EngR 843, (1849) 2 HLC 579, (1849) 2 HL Cas 579, (1849) 9 ER 1213
Links:
Jurisdiction:
England and Wales
Citing:
See Also – Beckham v Knight And Drake 24-Jan-1838
K and S having entered into a written engagement to employ Plaintiff in their trade for seven years.
Held: The Plaintiff could not sue D, a dormant partner with K. and S., but not party to the agreement. . .
See Also – Beckham v Knight And Drake CEC 28-Jun-1840
By a contract between the plaintiff and A and B, it was agreed that the plaintiff should serve A and B as foreman in their business for seven years, if A and B, or either of them, should so long live. – The plaintiff having subsequently discovered . .
See Also – Beckham v Drake, Knight, And Surgey 10-Jul-1841
. .
See Also – Beckham v Drake, Knight, And Surgey 19-Nov-1841
. .
See Also – Drake And Others v Beckham 6-Feb-1843
. .
Cited by:
Cited – Mulkerrins v Pricewaterhouse Coopers HL 31-Jul-2003
The claimant sought damages from her former accountants for failing to protect her from bankruptcy. The receiver had unnecessarily caused great difficulties in making their claim that such an action vested in them. The defendants had subsequently, . .
Cited – Wilson v United Counties Bank Ltd HL 1920
Bank’s duty to client’s reputation and credit
Major Wilson had left England on active service soon after the beginning of the Great War, leaving his business affairs, in a fairly precarious state, with his bank. The jury found that the bank had failed in its duty to supervise his business . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Contract
Updated: 09 December 2022; Ref: scu.185412