Coal Hub Pty Ltd v NSL Consolidated Ltd [No 4]

Coal Hub Pty Ltd v NSL Consolidated Ltd [No 4] involved a dispute between Coal Hub and NSL Consolidated over the assignment of a debt owed by NSL to Birmanie. Coal Hub claimed assignment of this debt from Birmanie, which Birmanie agreed to in a Deed of Assignment. The dispute hinged on whether the assignment was valid and if Coal Hub could enforce the debt against NSL. The case was heard in the Supreme Court of Western Australia.

The primary legal issues the court had to decide were whether the assignment of the debt was valid and enforceable, and if Coal Hub could claim damages for the loss of opportunity to enforce the debt against NSL. This included assessing whether NSL received proper notice of the assignment, if the assignment included the right to litigate, and whether Coal Hub could claim damages for the loss of the opportunity to enforce the debt. Additionally, the court had to consider the nature of damages, particularly if Coal Hub could claim for lost profits or other consequential losses.

The court held that the assignment was valid and effective upon its execution. It found that NSL had received notice of the assignment, despite some postal issues, and that the assignment included the right to litigate. The court rejected NSL's argument that the assignment was a bare right to litigate, stating that Coal Hub had a substantive interest in the debt. Regarding damages, the court held that Coal Hub could claim for the loss of opportunity to enforce the debt against NSL but declined to award damages for lost profits or other consequential losses. The court found that the expert evidence provided by Coal Hub was insufficient to support such a claim.

The court ordered that the assignment was valid and enforceable and that Coal Hub could proceed with legal action to recover the debt from NSL. The court also clarified that Coal Hub was entitled to recover the loss of opportunity to enforce the debt but did not award any damages for lost profits or consequential losses.