Merlin Advisors Pty Limited v Coombs

Merlin Advisors Pty Limited initiated proceedings against Coombs, asserting claims related to a debt owed under a deed. The dispute centred on whether the defendant was properly notified of an assignment of the deed to the plaintiff, which was essential for the plaintiff to enforce the debt against the defendant. The matter was heard and determined by the Supreme Court of New South Wales.

The court was tasked with determining whether the notice of assignment provided to the defendant was sufficient to bind him to the new party, Merlin Advisors Pty Limited, in their capacity as assignees of the original creditor. This hinged on whether the notice met the requirements stipulated in the deed, particularly concerning the proper notification of the assignment. Additionally, the court needed to assess if the assignment was valid and whether it was properly communicated to the defendant in accordance with the terms of the deed.

In reaching its decision, the court meticulously reviewed the terms of the deed and the notice of assignment. It was determined that the notice provided to the defendant did not comply with the specific requirements outlined in the deed for notifying an assignment. Consequently, the assignment was deemed ineffective, and the plaintiff was unable to enforce the debt against the defendant based on the assignment. The court found in favour of the plaintiff to the extent of the debt claimed, awarding $831,009.68 to Merlin Advisors Pty Limited.