Hazard Systems Pty Ltd v Car-Tech Services Pty Ltd (in liq)

The appeal concerned a dispute between Hazard Systems Pty Ltd (the appellant) and Car-Tech Services Pty Ltd (in liq) (the respondent). The core of the dispute involved the validity of an assignment of a chose in action to an insurer in support of subrogated rights, and whether the assignment complied with section 12 of the Conveyancing Act 1919 (NSW). The Court of Appeal of New South Wales was required to determine whether the assignment was absolute and whether proper written notice had been given to the obligor.

The court considered whether the assignment was absolute in nature, a prerequisite for a legal assignment under section 12 of the Conveyancing Act 1919. It also examined the requirement for written notice to be given to the debtor or obligor. The court's reasoning focused on the principles of equitable assignment and the ability of an equitable assignee to sue in the name of the legal holder of the rights, particularly in the context of subrogation where an insurer steps into the shoes of the insured.

The Court of Appeal allowed the appeal, setting aside the interlocutory judgment of the District Court. Leave was granted to the plaintiffs in the District Court to amend their statement of claim to reinstate Car-Tech as the plaintiff for specific claims. The court directed that each party bear their own costs of the proceedings in both the District Court and the Court of Appeal.