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Fitzroy v. Cave

Court of Appeal
2 K.B. 364 (1905)


Facts

Cave (defendant) owned debts to five separate creditors. The five creditors assigned their debts to Fitzroy (plaintiff). Fitzroy and Cave were both co-directors of the same company. Fitzroy was displeased with Cave’s performance as a director, and wished to acquire the debts for the purpose of forcing Cave into bankruptcy and out of his position as co-director. Once the debts were assigned to Fitzroy, Fitzroy brought suit against Cave to recover on the debts. The case was heard by Justice Lawrance in the lower court. The lower court entered judgment for Cave, holding that Cave’s debts could not be assigned to Fitzroy. Fitzroy appealed. 

Rule of Law

Issue

Holding and Reasoning (Cozens-Hardy, L.J.)

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