Page v McKensey

The appeal concerned a dispute between partners of a dissolved law firm, Page and McKensey, and others, regarding the equitable assignment of interests in a judgment debt and associated court orders. The primary issue before the Court of Appeal of New South Wales was whether certain assignments of inchoate interests in a judgment debt and costs orders were valid in equity, and consequently, whether leave should be granted to some judgment creditors to enforce those orders.

The court was required to determine the validity of equitable assignments of the judgment creditors' interests in a judgment debt and subsequent costs orders. Specifically, the court had to consider whether the assignments, made pursuant to a Retiring Partners agreement, effectively transferred the assignors' rights to the assignees, thereby entitling the assignees to enforce the judgment and costs orders. A further issue was whether leave should be granted to certain respondents to proceed with the enforcement of costs orders, given that the interests of other judgment creditors had been assigned.

The Court of Appeal upheld the validity of the equitable assignments. The court reasoned that the assignments, though of inchoate interests, were sufficiently clear and intended to operate immediately, thus satisfying the requirements for an equitable assignment. The court applied established principles of equity concerning the assignment of choses in action, noting that an assignment of future property or a mere expectancy could be enforced in equity once the property came into existence. The court also found that the assignments of the judgment creditors' interests were valid and that the assignees were entitled to enforce the judgment debt and costs orders.

The appeal was dismissed with costs. The judgment debt and interest paid into court were ordered to be paid out to the first, second, and third respondents. Furthermore, leave was granted to Hugh Stanley McKensey, Victor John Lewis, and Peter Charles Hicks to proceed to the assessment and enforcement of costs orders made on 28 February 1995 and 29 January 1996, including the issuance of a writ of execution against Geoffrey Francis Page and the payment of interest on those costs orders.