Equitable Assignments Continued: Statutory Assignments, Notice and Priorities
Teaching narrative
Section 199 of the Property Law Act 1974 (Qld) is the key statutory assignment provision for debts and other legal things in action. It requires an absolute assignment in writing signed by the assignor and express written notice to the debtor, trustee or other person liable. When those conditions are met, the legal right and remedies pass from the date of notice, subject to prior equities.
Section 200 addresses the efficacy in equity of voluntary assignments. It reflects the important idea that an equitable assignment may become effective when the assignor has done everything that the assignor must do, even though further steps by another person may remain before the assignee obtains complete legal title.
Notice performs more than one function. Under s 199 it is part of the route to statutory legal assignment. In priority disputes, notice may also be relevant to determining which competing equitable claimant should prevail, although the exact priority rule depends on the nature of the interests and the applicable doctrine.
Exam problems often combine assignment, priorities and insolvency. Work in chronological order: identify the property, each attempted assignment, the date and mode of each step, notice, consideration, legal/equitable status and any competing equities.
Rule and exam map
- Property Law Act 1974 (Qld) s 199: statutory assignments of things in action.
- Property Law Act 1974 (Qld) s 200: efficacy in equity of voluntary assignments once the assignor has done everything necessary on the assignor’s part.
- Notice can affect both legal effectiveness and priorities.
- Chronology is essential in competing-assignment problems.
Leading authorities
Historic priority authority concerning successive assignments and notice to the trustee or debtor.
Important for the “everything necessary” concept in voluntary transfer analysis.
Clarifies the limits of assignments of future property and income.
Demonstrates effective present assignment of part of an existing proprietary right to royalties.
Problem-solving method
Issue. Identify the equitable relationship, property or transaction and break it into sub-issues.
Law. State the exact doctrine, any applicable statute, and the authority that explains the rule.
Application. Apply each element to the facts, address the strongest counterargument, then identify the consequence or remedy.
Conclusion. Give a reasoned result and identify any fact that could change the outcome.
Tutorial-style problem
A creditor assigns the same debt twice. The first assignee receives a signed assignment but delays giving notice. The second assignee later takes an assignment for value and immediately gives written notice to the debtor.
Model answer
Construct a chronology. Determine whether either assignment satisfies s 199 and when legal effect arose. Then classify the competing interests before notice and apply the relevant equitable priority principles, including the significance of notice. Do not assume that “first in time” automatically resolves the dispute where the later claimant has taken additional steps recognised by the applicable priority rule.