Brownlee v Robb, 1907, UKHL
Citation: Brownlee v Robb, 1907, UKHL
Rule of thumb: Can rights under a contract be transferred to another person? Yes. As a general rule, rights under a contract can be assigned to another person. In order for this assignation to happen, the assignation has to be put down in writing – it cannot be done orally. The assignation however does not need a special form of contract, rather even a basic handwritten letter is sufficient to do this.
Judgment:
The facts of this case were that Mr Brownlee claimed that Mr Robb had assigned an assurance/insurance policy to his wife, Mrs Brownlee. Mrs Brownlee was the daughter of Mr Robb. Both Mr Robb and Mrs Brownlee were both dead. Mrs Robb was making the argument that the assignation by Mr Robb to Mrs Brownlee was invalid. Mr Brownlee was arguing that it was valid. Mrs Robb and Mr Brownlee could not reach an agreement over who was due the money from the insurance/policy and the matter ended up in Court. Mrs Robb argued that the writing of the assignment was not in the correct form to make the transfer invalidating it - she argued that the contractual principle of form applied and this overruled this assignation on a technicality. Mr Brownlee argued that all that was required for an assignment was that it was writing and it was the intention of the assignor - he argued whilst it was not perfectly written it was still effective enough to create an assignment of this policy. The Court upheld the arguments of Mr Brownlee. The Court affirmed that writing was necessary to make an assignment of an assurance/insurance policy but it did not have to be in a particular form prescribed by law. The Court stated that they had to do the best to understand the intention behind and this clearly led to the intention by Mr Robb to transfer it to his daughter upon his death rather than have it go to his wife. The Court held in this case that life assurance policies could be transferred to third parties provided that the assignation was clear. Mr Brownlee was therefore entitled to the insurance/assurance policy.
Ratio-decidendi:
'In my opinion the true principle of construction is that which I have indicated in the modified form of Mr Brownlee's argument; because, if no words of style are necessary to the assignment of a moveable right, it follows that effect must be given to the words of gift according to the intention with which they were used. I therefore proceed to consider whether there are legal grounds for inferring, in relation to this deed, that the words “hand over” were used with the intention of transferring the jus crediti in the policy... Against the effect of the assignation it was argued that the transfer was incomplete ... but I think this argument is founded on a misapprehension. Intimation is necessary to give a real right to the subject assigned. All the authorities who speak to the importance of intimation limit its effect in this way, and I can see no reason for doubting that an assignment of a policy of assurance, like any other deed purporting to give a contract right, is binding on the granter and his heirs. The law is so stated in Bell's Principles, sec. 1462, and unless this were the law there never could be an effectual intimation, because intimation always presupposes a valid contract right which is to be notified to the debtor. It follows that the executrix being under obligation to warrant the assignment cannot set up her title in opposition to that of the assignee', Lord McLaren., 'If no words of style are necessary to the assignment of a movable right, it follows that effect must be given to the words... intimation is necessary to give a real right', Lord McLaren, 15
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