The assignee clause was a regulation implemented to prohibit the transfer of a legal claim to an individual with different citizenship. This regulation mandated that all parties involved in a federal court lawsuit must possess the appropriate citizenship. However, in 1948, this rule was superseded by a new law stating that federal courts are not permitted to hear cases where an individual has been added to the lawsuit solely to fulfil the citizenship requirement.
The assignee clause, which was included in the Judiciary Act of 1789, prohibited individuals from assigning a legal claim to someone who did not possess the necessary diversity of citizenship. This requirement meant that in order to file a lawsuit in federal court, individuals had to meet specific criteria, including having different citizenship from the defendant. For instance, if a person from New York wished to sue someone from California in federal court, they had to demonstrate diverse citizenship, indicating that they were not from the same state as the defendant. Failure to meet this requirement would result in the inability to file a lawsuit in federal court. However, in 1948, the assignee clause was replaced by a new law, 28 USCA ยง 1359. This law prohibits federal jurisdiction when a party is improperly or collusively joined, either through assignment or other means, solely to invoke jurisdiction. Consequently, individuals are no longer allowed to assign their claim to someone else solely to fulfil the diversity of citizenship requirement and file a lawsuit in federal court. For example, if a person from New York wanted to sue someone from California in federal court, they would not be permitted to assign their claim to someone from a different state solely to meet the diversity of citizenship requirement. Such actions would be considered improper or collusive and would not be permitted under the new law.
An assignee clause is a provision in a contract that allows one party (the assignor) to transfer their rights and obligations under the contract to another party (the assignee).
Including an assignee clause can provide flexibility and allow for the transfer of rights and obligations to another party. This can be useful in situations such as mergers, acquisitions, or when one party wants to delegate their responsibilities to a third party.
In general, the ability to assign rights and obligations without an assignee clause depends on the specific terms of the contract and applicable laws. However, having an explicit assignee clause provides clarity and avoids potential disputes.
In some cases, the other party may have the right to refuse the assignment if the contract explicitly prohibits or restricts assignments. However, if the contract does not contain such restrictions, the other party may not have the right to refuse the assignment.
The assignee clause typically specifies whether the assignment can be made to any party or if there are restrictions. It is important to review the contract language to determine the scope of assignability.
Again, this depends on the specific terms of the contract. Some contracts may require the consent of the other party before an assignment can take place, while others may allow for assignments without consent.
The ability to assign only a portion of rights and obligations depends on the language of the assignee clause and the contract itself. Some contracts may allow partial assignments, while others may require the assignment of all rights and obligations.
In most cases, the assignor’s liability is extinguished once the assignment takes place. The assignee assumes the rights and obligations, including any associated liabilities.
The ability of an assignee to further assign their rights and obligations depends on the language of the assignee clause and the contract. Some contracts may allow for subsequent assignments, while others may prohibit them.
If a breach of contract occurs after the assignment, the assignee typically has the right to pursue legal remedies against the breaching party. However, it is important to review the specific terms of the contract and consult with legal counsel to understand the rights and obligations of the parties involved.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/assignee-clause/
- Modern Language Association (MLA):Assignee Clause. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/assignee-clause/.
- Chicago Manual of Style (CMS):Assignee Clause. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/assignee-clause/ (accessed: May 09 2024).
- American Psychological Association (APA):Assignee Clause. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/assignee-clause/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts