There could be no objection to an assignment by the trustee in bankruptyc of a cause of action in return for a share of the proceeds, which ‘apart from the bankruptcy law . . is plainly void for champerty.’
Judges:
Chitty J
Citations:
(1888) 40 ChD 481
Cited by:
Cited – Norglen Ltd (In Liquidation) v Reeds Rains Prudential Ltd and Others; Circuit Systems Ltd (In Liquidation) and Another v Zuken-Redac HL 1-Dec-1997
An assignment of a cause of action by a company in liquidation was valid, even though the dominant purpose was to avoid having to give security for costs, and to get legal aid. In dismissing the argument that the transactions were a device to defeat . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 30 April 2022; Ref: scu.223197
