Burrell Solicitors Pty Limited (In Liquidation) v Reavill Farm Pty Limited (No.2)

The case involved Burrell Solicitors Pty Limited, which was in liquidation, and Reavill Farm Pty Limited. The dispute was over the assignment of the right, title, and interest in a judgment entered against Reavill Farm, including any future monies owed by them pursuant to that judgment’s costs. The matter was heard in the Federal Court of Australia. The core issue before the court was whether the assignment was valid and enforceable, given that it was made in exchange for legal services and might include future property, which cannot be assigned at law.

The court had to determine the nature of the assignment and whether it constituted a present or future property. It examined the legal principles surrounding assignments and whether the assignment of future property, such as future costs, was permissible. The court also considered the implications of providing legal services as consideration for the assignment and whether such a transaction was enforceable. Furthermore, the court had to decide if the assignment could be upheld despite the impossibility of assigning future property at law.

The court concluded that the assignment was valid and enforceable to the extent it related to present property but not to future property. It held that while the assignment of the right to the judgment and any current costs was permissible, the assignment of future costs could not be legally enforced. The court reasoned that providing legal services in exchange for the assignment did not alter the fundamental legal principles regarding the assignment of future property. Therefore, the assignment of future costs was invalid. The court granted the orders sought by the liquidators to the extent of the present property, including the judgment and current costs, but disallowed the claim for future costs.