Suit by All Owners of Claim or Cause of Action; Equity Proceedings

Even though a debtor has not consented to a partial assignment in equity, when all interested persons are parties and their rights will be determined by a single decree, the assignment of a part of a debt is valid and enforceable against an obligor.[i]  However, a partial assignment without the consent of the debtor is invalid in equity.[ii]  When a partial assignment of a chose in action would be inequitable to give effect to the agreement or when its enforcement would substantially prejudice the debtor, courts of equity generally refuse to recognize such a partial assignment.[iii]

[i] General Excavator Co. v. Judkins, 128 Ohio St. 160 (Ohio 1934); Chase Nat’l Bank v. Sayles, 11 F.2d 948 (1st Cir. R.I. 1926)

[ii] Howard Undertaking Co. v. Fidelity Life Ass’n, 59 S.W.2d 746 (Mo. Ct. App. 1933),

[iii] Mkt. Holding Co. v. N. Camden Trust Co., 123 N.J. Eq. 328 (E. & A. 1938)


Inside Suit by All Owners of Claim or Cause of Action; Equity Proceedings