what is a assignment in court

assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm.

What is a notice of assignment?

An assignment takes place when one party is holding a right to property, claims, bills, lease, etc., of another party and wishes to pass it along (or sell it) to a third party. As complicated as that sounds, it really isn’t. Strangely enough, many assignments can be made under the law without immediately informing, or obtaining the permission, of the personal obligated to perform under the contract. An example of this is when your mortgage is sold to another mortgage company. The original mortgage company may not inform you for several weeks, and they certainly aren’t going to ask your permission to make the sale.

If a person obligated to perform has received notice of the assignment and still insists on paying the initial assignor, the person will still be obligated to pay the new assignee according to the agreement. If the obligated party has not yet been informed of the assignment and pays the original note holder (assignor), the assignor is obligated to turn those funds over to the new assignee. But, what are the remedies if this doesn’t take place? Actually, the new assignee may find themselves in a difficult position if the assignor simply takes off with their funds or payment. They are limited to taking action against the person they bought the note from (assignor) and cannot hold the obligator liable. Therefore, it is important to remember that if any note or obligation is assigned to another party, each party should be well aware of their responsibilities in the transaction and uphold them according to the laws of their state. Assignment forms should be well thought out and written in a manner which prevents the failure of one party against another.

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Assignment Legal Definition: Everything You Need to Know

The legal definition of assignment is when a person transfers a piece of property or contractual rights to another person. 3 min read updated on February 01, 2023

The legal definition of assignment is when a person transfers a piece of property or contractual rights to another person.

What is Assignment?

If you own a piece of property or have rights in a contract and would like to transfer either of these items to another person, you can make an assignment. For instance, if you own a trademark, you could transfer rights to your mark to someone else interested in using the mark.

Before an assignment will be legal, several requirements must be met:

All parties must be legally capable.
The objects being transferred must be legal.
Consideration should be included.
All parties must consent to the assignment.

One of the most common forms of assignment is a wage assignment . For instance, if you owe child support, alimony, back taxes, or some other form of debt, the court can require your employer to withhold a portion of your paycheck.

It is also possible to make an assignment for a mortgage. With a mortgage deed, you can give property interest to a lender in exchange for regular payments. Lenders frequently sell mortgages to other lenders. To complete the sale, a mortgage assignment document would need to be used. This document can clarify how payments will be made and can also be used to alter the terms of the mortgage.

Several factors can influence how assignment plays out. In particular, the language of the contract involved in the assignment can impact this process. Certain contracts, for instance, contain clauses that completely eliminate the possibility of assignment. In other contracts, assignment can only occur if the party being assigned the rights and responsibilities of the contract consents.

In some cases, the person making the assignment will still be liable for the performance of the contract . To make sure the contract is completed, a contract can include a provision that requires the original party to make sure the obligations of the contract are fulfilled, even if they have assigned their rights to a third party.

If the assignment significantly changes the terms of the contract, the agreement will usually not be enforceable. For instance, if assignment reduces the contract's value or exposes the other party to more risk, this would be a significant alteration, meaning the courts would not enforce the contract.

It's also possible that an assignment of contract would be restricted by the law. For instance, some states do not allow an employee's future wages to be assigned. Similarly, claims against the federal government usually cannot be assigned. Because it can increase the possibility of litigation, you are not allowed to assign a personal injury claim.

Delegation or Assignment?

In many cases, a person may want to find someone else to fulfill their contractual duties without having to assign the contract. In these cases, you would use a delegation instead of an assignment. Understand, however, that not all contractual obligations are eligible for delegation.

Personal services, for example, usually cannot be delegated. This is because these services are very specific. For instance, if you hired a musical act to play a party, the musician could not delegate their performance to another artist because they were hired with their specific style in mind. If one party wishes to eliminate the possibility of delegation, they should make sure the contract includes language restricting the practice.

Novation and Assignment

In regard to assignment, it's important to understand that only contractual benefits can be assigned. It is not possible to assign the burden of a contract . For example, if a contractor is hired for a construction project, they could assign their payment but not their obligation to complete the project.

Once an assignment has taken place, the assignee will be able to receive the contract's benefits. The assignee also has the ability to file a lawsuit to enforce their new contractual rights. If there are parts of the contract that still need to be completed, the assignor would be responsible for making sure that this occurs. If the contract is not fulfilled, the assignor would be legally liable since they cannot assign the burden.

Typically, when an assignment takes place, performance of the contract will be taken over from the assignee, and the assignor will request an indemnification for breach of contract.

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United States District Court

Northern district of iowa, honorable c.j. williams, chief judge | paul de young, clerk of court, search form, you are here, how are federal judges assigned to cases.

The basic considerations in making assignments are to assure equitable distribution of caseload and avoid judge shopping. By statute, the chief judge of each district court has the responsibility to enforce the court's rules and orders on case assignments. Each court has a written plan or system for assigning cases. The majority of courts use some variation of a random drawing. One simple method is to rotate the names of available judges. At times, judges having special expertise can be assigned cases by type, such as complex criminal cases, asbestos-related cases, or prisoner cases. The benefit of this system is that it takes advantage of the expertise developed by judges in certain areas. Sometimes cases may be assigned based on geographical considerations. For example, in a large geographical area it may be best to assign a case to a judge located at the site where the case was filed. Courts also have a system to check if there is any conflict that would make it improper for a judge to preside over a particular case.

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Assignee is a person to whom a right is transferred by the person holding such rights under the transferred contract (the “assignor”). The act of transferring is referred to as “ assigning ” or “ assignment ” and is a concept found in both contract and property law.

Contract Law

Under contract law, when one party assigns a contract, the assignment represents both: (1) a transfer of rights; and (2) a delegation of duties . For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C. Here, A has both: assigned A’s rights under the contract to receive the $50 to C, and delegated A’s duty to teach guitar to C. In this example, A is the “assignor” because he/she assigns the contract to C. A is also the “primary obligor ,” meaning he/she will still be liable to B if C fails to teach B guitar. C is the “assignee,” since C is the party to whom A transfers the contract. C is also the “secondary obligor,” since he/she must perform the obligations to B. B is the ultimate recipient of the duty under the assignment, and is the “ obligee .”

There are a few notable rules regarding assignments under contract law. First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee. That is, if A has not yet contracted with B to teach B guitar, A cannot assign his/her rights to C. Second, rights cannot be assigned when they materially change the obligor’s duty and rights. Third, the primary obligor can sue the assignee directly if the assignee does not perform the assigned duty. In guitar assignment example, if C does not teach B guitar, A can sue C for any liability that A incurs as a result of C’s failure to perform the assigned contract. Fourth, if the promised performance requires a rare genius or skill, then the primary obligor cannot assign the contract.

Lastly, a related concept is novation , which is when the secondary obligor substitutes and releases the primary obligor. If novation occurs, then the primary obligor’s duties are extinguished under the contract. However, novation requires the obligee’s consent . In the guitar example, if A, B, and C agree to novation, then A would not be liable if C fails to teach B guitar.

Property Law

Under property law, assignment typically arises in landlord-tenant situations. For example, A might be renting from landlord B but wants C, a new tenant, to take over the lease. In this scenario, A might be able to choose between assigning and subleasing the property to C. If assigning , A would be giving C the entire balance of the term, with no reversion to anyone. If subleasing , A would be giving C for a limited period of the remaining term. Significantly, under assignment, C would have privity of estate with the landlord, while under a sublease, C would not.

[Last updated in December of 2021 by the Wex Definitions Team ]

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Assignment Order Lawyer

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What Is an Assignment Order?

Being sued by a creditor means the creditor is trying to collect a debt a person owes. If a creditor wins a lawsuit, it’s called a judgment. Once the creditor has a judgment, it can collect the money owed by using an assignment order.

An assignment order is a legal order allowing a creditor to go after property a person owns. This property isn’t subjected to a levy. A levy ranges from a tax refund to an annuity policy or loan value on a life insurance policy that hasn’t matured.

Which Groups of People Are Vulnerable To an Assignment Order?

Typically, self-employed individuals and private contractors have assignment orders against them. The orders are generally used for people who don’t have regular wages to garnish . The orders are generally levied against their accounts receivable.

How Can a Creditor Obtain an Assignment Order?

Once the creditor has a judgment , the creditor goes to court again. This time, it’s to apply for an order prohibiting the debtor from getting rid of any money he has a right to receive. The debtor is given a notice to appear in court. It gives the person the opportunity to fight the assignment order. If the creditor is successful in obtaining the order, the order can be served on whomever paying the debtor. When payment is due, the money is sent to the creditor instead of the debtor.

What Types of Payments Can Creditors Use the Order to Obtain?

Creditors can use the order to obtain:

Insurance loans
Tax refunds
Dividend payments
Commissions

Can I Prevent an Assignment Order?

Yes, talk to a finance lawyer about preventing an assignment order if you owe a debt. The attorney will advise you of your options like negotiating with the creditor on your behalf to settle the debt.

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When Assigning the Right to Pursue Relief, Always Remember to Assign Title to, Or Ownership in, The Claim

Posted on: Oct 4 2016

Whether a party has standing to bring a lawsuit is often considered through the constitutional lens of justiciability – that is, whether there is a “case or controversy” between the plaintiff and the defendant “within the meaning of Art. III.” Warth v. Seldin, 422 U.S. 490, 498 (1975). To have Article III standing, “the plaintiff [must have] ‘alleged such a personal stake in the outcome of the controversy’ as to warrant [its] invocation of federal-court jurisdiction and to justify exercise of the court’s remedial powers on [its] behalf.” Id. at 498–99 (quoting Baker v. Carr , 369 U.S. 186, 204 (1962)).

To show a personal stake in the litigation, the plaintiff must establish three things: First, he/she has sustained an “injury in fact” that is both “concrete and particularized” and “actual or imminent.” Lujan v. Defenders of Wildlife , 504 U.S. 555, 560 (1992) (internal quotation marks omitted). Second, the injury has to be caused in some way by the defendant’s action or omission. Id . Finally, a favorable resolution of the case is “likely” to redress the injury. Id . at 561.

When a person or entity receives an assignment of claims, the question becomes whether he/she can show a personal stake in the outcome of the litigation, i.e. , a case and controversy “of the sort traditionally amenable to, and resolved by, the judicial process.’” Sprint Commc’ns Co., L.P. v. APCC Servs., Inc., 554 U.S. 269, 285 (2008) (quoting Vt. Agency of Natural Res. v. United States ex rel. Stevens, 529 U.S. 765, 777–78 (2000)).

To assign a claim effectively, the claim’s owner “must manifest an intention to make the assignee the owner of the claim.” Advanced Magnetics, Inc. v. Bayfront Partners, Inc. , 106 F.3d 11, 17 (2d Cir. 1997) (internal quotation marks and brackets omitted). A would-be assignor need not use any particular language to validly assign its claim “so long as the language manifests [the assignor’s] intention to transfer at least title or ownership , i.e., to accomplish ‘a completed transfer of the entire interest of the assignor in the particular subject of assignment.’” Id. (emphasis added) (citations omitted). An assignor’s grant of, for example, “‘the power to commence and prosecute to final consummation or compromise any suits, actions or proceedings,’” id. at 18 (quoting agreements that were the subject of that appeal), may validly create a power of attorney, but that language would not validly assign a claim, because it does “not purport to transfer title or ownership” of one. Id.

On September 15, 2016, the New York Appellate Division, First Department, issued a decision addressing the foregoing principles holding that one of the plaintiffs lacked standing to assert claims because the assignment of the right to pursue remedies did not constitute the assignment of claims. Cortlandt St. Recovery Corp. v. Hellas Telecom., S.à.r.l. , 2016 NY Slip Op. 06051.

BACKGROUND :

Cortlandt involved four related actions in which the plaintiffs – Cortlandt Street Recovery Corp. (“Cortlandt”), an assignee for collection, and Wilmington Trust Co. (“WTC”), an indenture trustee – sought payment of the principal and interest on notes issued in public offerings. Each action alleged that Hellas Telecommunications, S.a.r.l. and its affiliated entities, the issuer and guarantor of the notes, transferred the proceeds of the notes by means of fraudulent conveyances to two private equity firms, Apax Partners, LLP/TPG Capital, L.P. – the other defendants named in the actions.

The defendants moved to dismiss the actions on numerous grounds, including that Cortlandt, as the assignee for collection, lacked standing to pursue the actions. To cure the claimed standing defect, Cortlandt and WTC moved to amend the complaints to add SPQR Capital (Cayman) Ltd. (“SPQR”), the assignor of note interests to Cortlandt, as a plaintiff. The plaintiffs alleged that, inter alia , SPQR entered into an addendum to the assignment with Cortlandt pursuant to which Cortlandt received “all right, title, and interest” in the notes.

The Motion Court granted the motions to dismiss, holding that, among other things, Cortlandt lacked standing to maintain the actions and that, although the standing defect was not jurisdictional and could be cured, the plaintiffs failed to cure the defect in the proposed amended complaint. Cortlandt St. Recovery Corp. v. Hellas Telecom., S.à.r.l. , 47 Misc. 3d 544 (Sup. Ct., N.Y. Cnty. 2014).

The Motion Court’s Ruling

As an initial matter, the Motion Court cited to the reasoning of the court in Cortlandt Street Recovery Corp. v. Deutsche Bank AG, London Branch , No. 12 Civ. 9351 (JPO), 2013 WL 3762882, 2013 US Dist. LEXIS 100741 (S.D.N.Y. July 18, 2013) (the “SDNY Action”), a related action that was dismissed on standing grounds. The complaint in the SDNY Action, like the complaints before the Motion Court, alleged that Cortlandt was the assignee of the notes with a “right to collect” the principal and interest due on the notes. As evidence of these rights, Cortlandt produced an assignment, similar to the ones in the New York Supreme Court actions, which provided that as the assignee with the right to collect, Cortlandt could collect the principal and interest due on the notes and pursue all remedies with respect thereto. In dismissing the SDNY Action, Judge Oetken found that the complaint did not allege, and the assignment did not provide, that “title to or ownership of the claims has been assigned to Cortlandt.” 2013 WL 3762882, at *2, 2013 US Dist. LEXIS 100741, at *7. The court also found that the grant of a power of attorney (that is, the power to sue on and collect on a claim) was “not the equivalent of an assignment of ownership” of a claim. 2013 WL 3762882 at *1, 2013 US Dist. LEXIS 100741 at *5. Consequently, because the assignment did not transfer title or ownership of the claim to Cortlandt, there was no case or controversy for the court to decide ( i.e. , Cortlandt could not prove that it had an interest in the outcome of the litigation).

The Motion Court “concur[red] with” Judge Oeken’s decision, holding that “the assignments to Cortlandt … were assignments of a right of collection, not of title to the claims, and are accordingly insufficient as a matter of law to confer standing upon Cortlandt.” In so holding, the Motion Court observed that although New York does not have an analogue to Article III, it is nevertheless analogous in its requirement that a plaintiff have a stake in the outcome of the litigation:

New York does not have an analogue to article III. However, the New York standards for standing are analogous, as New York requires “[t]he existence of an injury in fact—an actual legal stake in the matter being adjudicated.”

Under long-standing New York law, an assignee is the “real party in interest” where the “title to the specific claim” is passed to the assignee, even if the assignee may ultimately be liable to another for the amounts collected.

Citations omitted.

Based upon the foregoing, the Motion Court found that Cortlandt lacked standing to pursue the actions.

Cortlandt appealed the dismissal. With regard to the Motion Court’s dismissal of Cortlandt on standing grounds, the First Department affirmed the Motion Court’s ruling, holding:

The [IAS] court correctly found that plaintiff Cortlandt Street Recovery Corp. lacks standing to bring the claims in Index Nos. 651693/10 and 653357/11 because, while the assignments to Cortlandt for the PIK notes granted it “full rights to collect amounts of principal and interest due on the Notes, and to pursue all remedies,” they did not transfer “title or ownership” of the claims.

The Takeaway

Cortlandt limits the ability of an assignee to pursue a lawsuit when the assignee has no direct interest in the outcome of the litigation. By requiring an assignee to have legal title to, or an ownership interest in, the claim, the Court made clear that only a valid assignment of a claim will suffice to fulfill the injury-in-fact requirement. Cortlandt also makes clear that a power of attorney permitting another to conduct litigation on behalf of others as their attorney-in-fact is not a valid assignment and does not confer a legal title to the claims it brings. Therefore, as the title of this article warns: when assigning the right to pursue relief, always remember to assign title to, or ownership in, the claim.

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Individual Assignment System (IAS) | Practical Law

Individual Assignment System (IAS)

Practical law glossary item 1-553-1946 (approx. 2 pages).

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25-504 Order of assignment

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A. In a proceeding in which the court orders a person to pay support the court shall, and in a proceeding in which the court orders a person to pay spousal maintenance the court may, assign to the person or agency entitled to receive the support or spousal maintenance that portion of the person’s income necessary to pay the amount ordered by the court. In a proceeding in which spousal maintenance is ordered to be paid the court shall order the assignment on either party’s request.

B. A person who is obligated by an order to pay support or spousal maintenance, the person to whom support or spousal maintenance is ordered to be paid or the department or its agent in a title IV-D case may file a verified request with the clerk of the superior court requesting the clerk to issue an ex parte order of assignment for support or spousal maintenance. The ex parte order of assignment may include a payment for current support and any other support, current spousal maintenance, spousal maintenance arrearages and interest on spousal maintenance arrearages. A request filed by the department or its agent need not be verified. The request shall state:

1. The name of the person or agency entitled to receive support or spousal maintenance.

2. The monthly amount of any current support and the monthly amount of any spousal maintenance ordered by the court.

3. The specific amount requested for any support arrearages, spousal maintenance arrearages or interest.

4. The name and address of the payor to whom it is requested the order of assignment be directed and the name of the person obligated to pay support or spousal maintenance.

C. After receipt of a request for an ex parte order of assignment the clerk of the superior court, without a hearing or notice to the person obligated to pay support or spousal maintenance, shall issue an order of assignment of that portion of the person’s income as is sufficient to pay the amount requested to the person or agency entitled to receive the support or spousal maintenance. The order of assignment shall include the social security number of the obligated person. On issuance of an ex parte order of assignment, the clerk shall issue a notice directed to the obligor in substantially the following form, which shall also be in Spanish:

To: The obligor (the person ordered to pay support or spousal maintenance)

This is to notify you that part of your income or other monies is being taken away by the enclosed order of assignment that was issued on a request for an order of assignment that also is enclosed. The order of assignment has been issued for currently accruing child support or spousal maintenance, or both, based on the requesting party’s claim that you are obligated to pay this. In addition, the requesting party may be claiming a right to collect other support, as defined in section 25-500, Arizona Revised Statutes, arrearages on spousal maintenance or interest on a judgment for unpaid spousal maintenance.

If you believe the enclosed order of assignment is improper or unlawful, that your property is exempt by law or that your employer or other payor is withholding more than is permitted by law, you may request a hearing before the superior court. You must file a request to terminate or adjust the order of assignment on forms provided by the clerk of the court within seven days after your receipt of the order for assignment, request for an order of assignment and this notice. If you request a hearing, it will be held no more than ten days after you file your request with the court.

Here are some other important things you should know:

The order of assignment is effective immediately on service of the order on your employer or another payor. The first employer or payor served shall not withhold or deduct amounts specified in the ex parte order of assignment for fourteen calendar days from the date of service to allow you, the obligor, an opportunity to contest the order of assignment as provided in section 25-504, Arizona Revised Statutes. A future employer or payor may begin deductions sooner than the fourteen day period after the order of assignment is received.

If you request a hearing, the court, after considering the financial resources of both parties and the reasonableness of the positions each party has taken, may order a party to pay a reasonable amount to the other for the attorney fees and costs of filing or defending the request.

Under state law (section 33-1131, Arizona Revised Statutes) no more than one-half of your disposable earnings for any pay period may be taken to satisfy an order issued for support or spousal maintenance. The amount of disposable earnings exempt from the order of assignment must be paid to you when due. Disposable income means the remaining portion of your wages, salary or compensation for personal services, including bonuses and commissions, or otherwise, and includes payments pursuant to a pension or retirement program or a deferred compensation plan, after deducting from such earnings the amounts required by law to be withheld.

An employer or other payor who receives the order of assignment may deduct from amounts due to you one dollar for each pay period, but not more than four dollars per month, for costs. The employer or payor also must deduct a monthly amount for the support payment handling fee required by state law (section 25-510, Arizona Revised Statutes).

The employer or other payor on whom the order of assignment is served will continue to withhold the amount set in the order and will forward the payment to the support payment clearinghouse until you file with the clerk one of the following:

1. A verified request to adjust the order of assignment, and the court adjusts the order of assignment because there has been a change of circumstances since the time of the issuance of the order or there is other good cause to do so.

2. A verified request for a hearing to terminate the order of assignment and, after a hearing, the court terminates the order of assignment if all obligations have been satisfied or will be satisfied within ninety days.

3. A notarized stipulation stating that the obligation to pay support or spousal maintenance has ended and that all arrearages either have been satisfied or have been waived, and the clerk terminates the order of assignment.

An employer may not refuse to hire, may not discharge or may not otherwise discipline you as a result of the order of assignment. If you are wrongfully refused employment, discharged or otherwise disciplined you may recover damages suffered, plus reinstatement if appropriate, plus reasonable attorney fees and costs incurred against the employer.

Unless a court has expressly ordered otherwise, you must notify the clerk of the court or the support payment clearinghouse in writing of the address of your residence and of your employment and, within ten days, of a change in either one. Your failure to do so may subject you to sanctions for contempt of court, including reasonable attorney fees and costs pursuant to state law (section 25-504, subsection R, Arizona Revised Statutes). Official notices will be delivered to you at the most recent addresses you have provided to the clerk or support payment clearinghouse.

D. Any order of assignment shall be issued only for support, spousal maintenance, spousal maintenance arrearages, interest on spousal maintenance arrearages and handling fees. The order of assignment shall state the total amount that the payor shall withhold. The order of assignment also shall specify the monthly amount of current support and any other payment ordered for support, the monthly amount of any current spousal maintenance, the monthly amount of any spousal maintenance arrearages and any monthly interest payment. If the obligor’s disposable earnings from the primary employer or other payor do not meet the support obligation, the court shall issue an order of assignment to a secondary employer or other payor of the obligor in order to meet the full support obligation.

E. An order of assignment shall be served on any employer or other payor by first class mail, electronic transmission or personal delivery or pursuant to the Arizona rules of family law procedure. The order of assignment is effective immediately on receipt by any employer or other payor and any future employer or future payor. Any employer or other payor of monies shall begin withholding no later than fourteen days after receipt of an order of assignment. The employer or other payor, if feasible, may begin withholding sooner than the fourteen day period if a payment to the obligor is due sooner.

F. Two copies of an ex parte order of assignment and of the request for an order of assignment, together with a copy of the notice required by this section, shall be served on any employer or other payor in the same manner as other orders of assignment under this section. Within five days after receipt, the employer or payor shall serve by personal delivery or by registered mail one copy of the ex parte order of assignment and of the request and the notice on the employee or other payee. The ex parte order of assignment is effective on any employer or other payor, and as an assignment by operation of law is effective on any future employers or other future payors, immediately on receipt. The first employer or other payor served shall not withhold or deduct amounts specified in the ex parte order of assignment for fourteen calendar days to allow the obligor an opportunity to contest the order of assignment as provided in this section. Any future employers or future payors shall begin withholding not later than fourteen days after receipt of an ex parte order of assignment but, if feasible, may begin withholding sooner than fourteen days if a payment to the obligor is due sooner.

G. After service of an ex parte order of assignment on the employer or payor that initially receives the order of assignment, an obligor may request a hearing to contest the ex parte order of assignment. The request shall be made in writing, and the obligor shall state under oath the specific reason for the request. The request shall be filed with the court together with a notice of hearing form. The court shall hold a hearing within ten days after the request and notice of hearing form is filed. Immediately on the scheduling of the hearing, the obligor shall serve a copy of the request for and notice of hearing on the person entitled to receive support, and in a title IV-D case to the department. If the obligor files a request for hearing within seven days after receipt of the order of assignment, the court may order the support payment clearinghouse not to disburse any monies received pursuant to the order of assignment until further order of the court. The obligor may contest the withholding for any of the following reasons:

1. There is an error in the identity of the obligor.

2. There is an error in the amount of support or spousal maintenance.

3. Invalidity of the order for support or spousal maintenance.

4. Current support or spousal maintenance is no longer owed, if the order of assignment includes a payment for current support or spousal maintenance.

5. Arrearages are not owed if the order of assignment includes a payment for arrearages.

H. Any employer or other payor who has received any order of assignment shall withhold the amount specified in the order of assignment, together with the handling fee as provided in section 25-510, from the income of the person obligated to pay support or spousal maintenance and shall transmit the withheld monies to the support payment clearinghouse within two business days after the obligor is paid or after the payment to the obligor is due. The handling fee shall be deducted and transmitted monthly. For the cost of compliance the employer or payor may also withhold and retain an additional one dollar per payment but not more than four dollars per month for each obligor. An employer or payor may combine in a single payment withheld monies for more than one obligor, shall separately identify the portion of the remittance that is attributable to each obligor and shall include each obligor’s social security number. An employer or payor shall notify the clerk or support payment clearinghouse in writing when the obligor is no longer employed or the right to receive income or other monies has been terminated. The employer or payor shall also notify the clerk or support payment clearinghouse in writing of the obligor’s social security number and last known address and the name and address of the obligor’s new employer, if known, within ten days. In a non-title IV-D case, within ten days after receiving this information the support payment clearinghouse shall notify the clerk of the superior court in the county where the support or maintenance order was issued. If within ninety days of the last payment, the employer or other payor reemploys the obligor or becomes obligated to pay the obligor, the employer or payor is again bound by the order of assignment and is required to perform as required by this section. In a title IV-D case the order of assignment may be reinstated pursuant to section 25-505.01. An employer or payor who fails without good cause to comply with the terms of an order of assignment is liable for amounts not paid to the clerk or support payment clearinghouse pursuant to the order of assignment and reasonable attorney fees, costs and other expenses incurred in procuring compliance and may be subject to contempt.

I. If a person is obligated to pay child support for more than one family and the amount available for withholding is not sufficient to meet the total combined current child support obligation, any monies withheld from the obligor’s income shall be allocated to each family by the employer or payor as follows:

1. The amount of current child support ordered in each case shall be added together to obtain the total current child support obligation.

2. The amount of current child support ordered in each case shall be divided by the total current child support obligation to obtain the percentage of the total current child support obligation to be allocated to each case.

3. The amount withheld from the obligor shall be multiplied by the percentage for each case to obtain the amount to be allocated to each case.

J. The person or agency entitled to receive support or spousal maintenance shall notify the clerk of the superior court or support payment clearinghouse in writing of any change of residential address and of any other information required pursuant to section 46-443, within ten days of any change. If after reasonable efforts to locate the obligee the clerk or support payment clearinghouse is unable to deliver payments under an order of assignment for the period prescribed in section 25-503 due to the failure of an obligee to comply with the notice requirement of this subsection, the clerk or support payment clearinghouse shall not make further payment under the order of assignment and shall return payments to the obligor as prescribed in section 25-503. Under these circumstances the court, clerk or department or its agent shall order the release of the employer or payor from the order of assignment on request of the employer, the payor, the department or its agent or on the clerk’s own initiative. Any order of assignment from which an employer or payor has been released may be reinstated by following the procedures for obtaining an ex parte order of assignment pursuant to this section or, in a title IV-D case, an administrative income withholding order pursuant to section 25-505.01.

K. Unless a court has ordered otherwise, the person ordered to pay support or spousal maintenance shall notify the clerk of the superior court or the support payment clearinghouse in writing of the obligor’s residential address and the name and address of any employer, and within ten days of any change. Failure to do so may subject the person to sanctions for contempt of court, including reasonable attorney fees and costs.

L. Any order of assignment may be adjusted if there has been a change of circumstances since the date the order of assignment was issued or for good cause. The department or its agent or a person obligated to pay or entitled to receive support or spousal maintenance shall file with the clerk of the superior court a request to adjust the order of assignment and a proposed order of assignment. The request shall specify the adjustment sought and the reason for the request. A copy of the request shall be served pursuant to the Arizona rules of family law procedure, or by the department or its agent in a title IV-D case by first class mail, on all other parties and on the state if the department is providing title IV-D support services or has a claim for arrearages. The party receiving the request and proposed order may request a hearing within twenty days or within thirty days if service is made outside this state. On proof of service and if a hearing has not been requested within the time allowed, the clerk shall issue the order of assignment as appropriate. Within two business days after the date the order of assignment is issued, the clerk shall transmit a copy of the order of assignment to the employer or payor, the department or its agent and all parties. Unless ordered otherwise by the court, in a title IV-D case any order of assignment may be adjusted pursuant to section 25-505.01.

M. The department or its agent or a person obligated to pay or entitled to receive support or spousal maintenance may file a request to terminate any order of assignment if the obligation to pay support or spousal maintenance has ended or will end within ninety days after the filing of the request and if all arrearages either have been paid or will be paid within the period or have been waived. The request shall state the reason why termination is requested and shall contain the name and address of the employer or payor of the person obligated to pay support. A copy of the request shall be served pursuant to the Arizona rules of family law procedure, or by the department or its agent in a title IV-D case by first class mail, on all other parties and on the state if the department is providing title IV-D support services or has a claim for arrearages. A party receiving this notice may request a hearing within twenty days or within thirty days if service is made outside this state. On proof of service and if a hearing has not been requested within the time allowed, the clerk shall issue an order terminating the order of assignment as appropriate. Within two business days after the date the order is issued, the clerk shall transmit a copy of the order terminating the order of assignment to the employer or payor and to the department or its agent. If a hearing is requested, the court shall set the hearing within twenty days after receiving the request and shall issue an appropriate order. A person who is ordered to pay support may request the court to terminate an order of assignment at any time if an employer is making deductions on multiple assignments for an obligation for the same minor children. Notwithstanding any law to the contrary, the clerk shall not charge a fee to a person who files a request to terminate an order of assignment if an employer is making deductions on multiple assignments for an obligation for the same minor children.

N. If a request to adjust or terminate an order of assignment is filed, the court in its discretion may order that the clerk of the superior court or support payment clearinghouse not disburse any monies in dispute until further order of the court.

O. The clerk of the superior court shall issue an order terminating the order of assignment if the parties, including the department or its agent in a title IV-D case, file a notarized stipulation with the clerk that all obligations of support or spousal maintenance have been satisfied and that the obligor is no longer obligated to pay support or spousal maintenance. The stipulation shall state that the current obligation of support or spousal maintenance no longer exists and that all arrearages either have been satisfied or waived. The stipulation shall also contain the name and address of the employer or payor of the person obligated to pay support or spousal maintenance. Within five business days after the date the stipulation is filed, the clerk shall transmit a copy of the order terminating the order of assignment to the employer or payor and to the department or its agent. Notwithstanding any law to the contrary, the clerk shall not charge a fee to a party who files a stipulation pursuant to this subsection.

P. An assignment ordered pursuant to this section has priority over all other executions, attachments or garnishments. An obligation for current child support shall be fully met before any payments pursuant to an order of assignment may be applied to any other support obligation. An assignment ordered under this section does not apply to amounts made exempt under section 33-1131 or any other applicable exemption law.

Q. Any employer or other payor shall not refuse to hire a person and shall not discharge or otherwise discipline an obligor because of service of an order of assignment authorized by this section. An employer or payor who refuses to hire a person or who discharges or otherwise disciplines an employee or obligor because of service of an order of assignment is subject to contempt and sanctions as may be ordered by the court. A person who is wrongfully refused employment, wrongfully discharged or otherwise disciplined is entitled to recover damages sustained by the prohibited conduct, reinstatement, if appropriate, and attorney fees and costs incurred.

R. In any proceeding under this section the court, after considering the financial resources of the parties and the reasonableness of the positions each party has taken, may order a party to pay a reasonable amount to another party for the costs and expenses, including attorney fees, of maintaining or defending the proceeding.

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What Is Wage Assignment?

Definition and example of wage assignment, how wage assignment works, wage assignment vs. wage garnishment.

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A wage assignment is when creditors can take money directly from an employee’s paycheck to repay a debt.

Key Takeaways

A wage assignment happens when money is taken from your paycheck by a creditor to repay a debt.
Unlike a wage garnishment, a wage assignment can take place without a court order, and you have the right to cancel it at any time.
Creditors can only take a portion of your earnings. The laws in your state will dictate how much of your take-home pay your lender can take.

A wage assignment is a voluntary agreement to let a lender take a portion of your paycheck each month to repay a debt. This process allows lenders to take a portion of your wages without taking you to court first.

Borrowers may agree to allow a lender to use wage assignments, for example, when they take out payday loans . The wage assignment can begin without a court order, although the laws about how much they can take from your paycheck vary by state.

For example, in West Virginia, wage assignments are only valid for one year and must be renewed annually. Creditors can only deduct up to 25% of an employee’s take-home pay, and the remaining 75% is exempt, including for an employee’s final paycheck.

If you agree to a wage assignment, that means you voluntarily agree to have money taken out of your paycheck each month to repay a debt.

State laws govern how soon a wage assignment can take place and how much of your paycheck a lender can take. For example, in Illinois, you must be at least 40 days behind on your loan payments before your lender can start a wage assignment. Under Illinois law, your creditor can only take up to 15% of your paycheck. The wage assignment is valid for up to three years after you signed the agreement.

Your creditor typically will send a Notice of Intent to Assign Wages by certified mail to you and your employer. From there, the creditor will send a demand letter to your employer with the total amount that’s in default.

You have the right to stop a wage assignment at any time, and you aren’t required to provide a reason why. If you don’t want the deduction, you can send your employer and creditor a written notice that you want to stop the wage assignment. You will still owe the money, but your lender must use other methods to collect the funds.

Research the laws in your state to see what percentage of your income your lender can take and for how long the agreement is valid.

Wage assignment and wage garnishment are often used interchangeably, but they aren’t the same thing. The main difference between the two is that wage assignments are voluntary while wage garnishments are involuntary. Here are some key differences:

Once you agree to a wage assignment, your lender can automatically take money from your paycheck. No court order is required first, but since the wage assignment is voluntary, you have the right to cancel it at any point.

Wage garnishments are the results of court orders, no matter whether you agree to them or not. If you want to reverse a wage garnishment, you typically have to go through a legal process to reverse the court judgment.

You can also stop many wage garnishments by filing for bankruptcy. And creditors aren’t usually allowed to garnish income from Social Security, disability, child support , or alimony. Ultimately, the laws in your state will dictate how much of your income you’re able to keep under a wage garnishment.

Creditors can’t garnish all of the money in your paycheck. Federal law limits the amount that can be garnished to 25% of the debtor’s disposable income. State laws may further limit how much of your income lenders can seize.

Illinois Legal Aid Online. “ Understanding Wage Assignment .” Accessed Feb. 8, 2022.

West Virginia Division of Labor. “ Wage Assignments / Authorized Payroll Deductions .” Accessed Feb. 8, 2022.

U.S. Department of Labor. “ Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) .” Accessed Feb. 8, 2022.

Sacramento County Public Law Library. “ Exemptions from Enforcement of Judgments in California .” Accessed Feb. 8, 2022.

District Court of Maryland. “ Wage Garnishment .” Accessed Feb. 8, 2022.

US Judge Shopping Curb Thwarted as Texas Court Resists (3)

By Jacqueline Thomsen

A Northern Texas federal court that has come under fire for judge shopping practices by litigants won’t change its case assignment policies — leaving few other plausible pathways to address the issue.

Majority Leader Chuck Schumer (D-N.Y.) said Monday the “Senate will consider legislative options” after US Chief District Judge David Godbey told him in a letter that Northern District assignment rules would stay in place. However, partisan divisions make it unlikely that Congress could pass a bill addressing judge shopping.

“It’s hard to imagine legislation getting out of Congress—even though it should be a no-brainer,” said Stephen Vladeck, a law professor at the University of Texas at Austin School of Law.

That leaves a Supreme Court decision addressing the topic or a lengthy rulemaking process among the only viable paths for a nationwide curb, and there’s disagreement within the judiciary whether it even have the authority to adopt such a measure.

The Northern District in particular has been criticized for its case assignment policies that result in lawsuits being filed in certain divisions automatically being heard by specific judges. US District Judge Matthew Kacsmaryk, who hears all civil cases filed in Amarillo, in particular has seen his court become the focus of scrutiny over judge shopping, as conservatives file challenges there including one to the abortion pill mifepristone.

The federal judiciary’s policy-making body, the Judicial Conference, last month adopted a policy urging courts to change their case assignment procedures to avoid litigants filing in courts where they think they’re more likely to have a favorable outcome. In guidance issued by a judicial committee, district courts were told that cases seeking national or state-wide relief should be randomly assigned throughout the full district.

In the letter released Monday, Godbey wrote that he and the other judges in his district met on March 27, and the “consensus was not to make any change to our case assignment process at this time.”

Schumer had urged Godbey in a March 21 letter to adopt such a policy “as soon as possible.” The top Senate Democrat referenced a previous letter exchange with the judge, saying the “logistical issues” that were raised then wouldn’t apply here, as only a few civil cases would be affected by the change.

Some top Senate Republicans urged chief judges to ignore the policy when it was initially thought to be mandatory. In a follow-up letter to top judiciary officials also sent last week, Senate Minority Leader Mitch McConnell (R-Ky.) and others said they were “pleased that the judiciary has chosen not to interfere in the legislative process.”

A federal judiciary advisory committee is separately weighing a rule addressing forum shopping. However, during its most recent public meeting in January, members raised concerns that they might lack the authority to pass such a rule, but said they should keep studying the issue in case Congress decides to take action on it. A federal statute currently says that case assignment rules are set by chief district judges.

The Justice Department has pushed back against the idea the committee lacks the authority to create such a rule, and has argued that the courts could adopt a number of proposed policies to address judge shopping worries.

Amanda Shanor, assistant professor of legal studies and business ethics at the the Wharton School of the University of Pennsylvania, has called for such a rule to be implemented. She said that a binding rule can be created under an act that allows the Supreme Court to set the rules of procedure for federal courts.

“The actions of the Northern District of Texas clearly demonstrate that a rule is still needed despite the policy,” Shanor said.

Vladeck said that he thinks the focus might shift to the Supreme Court, either through its rulings or its role in changing the federal rules on how civil cases proceed through courts. “But the more the Northern District becomes an outlier nationwide, the more I have to think it’s only underscoring why random assignment is better for all involved,” he added.

To contact the reporter on this story: Jacqueline Thomsen in Washington at [email protected]

To contact the editors responsible for this story: Seth Stern at [email protected] ; John Crawley at [email protected]

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'She's stacking the deck': Jack Smith expected to quickly appeal Judge Cannon's next order

David Edwards

Senior editor, david edwards has spent over a decade reporting on social justice, human rights and politics for raw story. he also writes crooks and liars. he has a background in enterprise resource planning and previously managed the network infrastructure for the north carolina department of correction..

'She's stacking the deck': Jack Smith expected to quickly appeal Judge Cannon's next order

Former New York Assistant Attorney General Adam Pollock said U.S. District Court Judge Aileen Cannon was "stacking the deck" in favor of Donald Trump.

On Sunday, Pollock told MSNBC's Alex Witt that special counsel Jack Smith would comply Monday after the judge requested jury instructions in a way experts say misstates the law and the case.

"He has to comply with the order," Pollock explained. "He'll get an order back from the court about these jury instructions... Then he'll have an appealable order."

The former prosecutor noted that Smith may appeal before a trial date is set for the case.

"This is completely putting the cart before the horse," he said. "The judge is signaling, as she has signaled from the get-go, that she doesn't believe in this case, that she doesn't believe the case is warranted, and she's stacking the deck in favor of the defendant."

ALSO READ: 11 ways Trump doesn't become president

"So, is there anything that Jack Smith can do to get this case moving along?" Witt wondered.

"He has successfully appealed prior orders from this judge to the appellate court, and the appellate court has, on multiple occasions, reversed this judge," Pollock replied. "I would expect that if there is an order on these jury instructions, as she's already signaling she is likely to order, that he'll go right back to the appellate court."

Cannon, appointed by Trump, has faced reversal by an appeals court after initially ruling in Trump's favor regarding handling classified documents. Cannon, a member of the Federalist Society, was confirmed to the federal bench in November 2020 with limited experience as a lawyer. Her decision came into the spotlight after federal agents searched Trump's Mar-a-Lago residence in Florida, uncovering classified documents.

Cannon agreed with Trump's lawyers to halt the FBI's review of these records until an independent third party could examine them. This move was met with criticism, including from William Barr, Trump's former attorney general.

The appeals court later overturned Cannon's decision, stating she had no authority to appoint a special master to review the documents. This ruling came as Trump faced charges for illegally retaining classified documents and obstructing justice.

Stories Chosen For You

Should trump be allowed to run for office, ex-judge: trump knows jail is 'a real possibility' after gag order tightens.

A retired federal judge warns that Donald Trump may want to heed the expanded gag order or wind up laying his head in a New York lockup.

"The first thing you can do is to give a warning," said Shira Scheindlin, a former federal judge told CNN's Kaitlin Collins Monday night. "I think that's been covered."

On Monday, Justice Juan Merchan amended a gag order issued last week to include his own political strategist executive daughter at the behest of Manhattan District Attorney Alvin Bragg, court records show.

"“This pattern of attacking family members of presiding jurists and attorneys assigned to his cases serves no legitimate purpose,” Merchan wrote. “It merely injects fear in those assigned or called to participate in the proceedings that not only they, but their family members as well, are ‘fair game,’ for Defendant’s vitriol.”

Meanwhile, Scheindlin, who retired after 22 years of ruling from a Manhattan federal court , explained that if Trump can't abide by the new terms, next recourse is to "give fines" to former President Donald Trump, as was the action taken by Supreme Court Justice Arthur Engoron while he was presiding over Trump's civil fraud case.

Failing that, there's jail.

ALSO READ: No, Donald Trump, fraud is not protected by the First Amendment

Engoron warned about that same sanction after fining the 45th president twice for violating a gag order for disparaging his court clerk, noting, "I don’t want anybody killed.”

"But the third step, and it has to happen sometimes with contempt, is actually putting somebody in the cell until they understand and that the behavior is absolutely unacceptable," she said.

Scheindlin cautioned that such a move would be a very last resort given that the defendant in this case happens to be a former president who is also the presumptive Republican nominee to become the 47th president.

"Now, is that what anybody wants to do?" she asked rhetorically. "No, because that would only make him a martyr; so nobody really wants to put him in a cell."

Should Trump breach the gag order, then Merchan could pull that drastic lever. She said, "he has to know, I think that that is a real possibility — if he doesn't stop doing what the judges ordered, that he stopped doing."

Trump's also being handled with kid gloves in the case where he's charged with 34 counts of falsifying business records to shield allegedly damning intel from adult film star Stormy Daniels.

Trump has pleaded not guilty. The trial is scheduled to begin in Lower Manhattan on April 15 .

"He's again, being treated differently than any other defendant because any other defendant would be incarcerated if they did not stop the behavior,"she said. "But we've got a problem here... it's really hard to muzzle him with the threat of incarceration because as I said, that would only make him a martyr."

Watch the video below or click here.

'Thoughts and prayers' extended to creditor behind Trump's $175M civil fraud bond

Former President Donald Trump paid his $175 million bond in the New York civil fraud case on Monday — preventing him from having sell off assets at least until his appeal works its way through the system.

But the person who bankrolled the bond is an interesting figure — and one who already has a number of financial ties to the former president, MSNBC legal expert Lisa Rubin noted on X.

"The company that underwrote Trump's bond tonight in the NY Attorney General's civil fraud case, Knight Specialty Insurance Co., is owned by Don Hankey, the so-called 'king of subprime car loans.' But that's not all," wrote Rubin.

"Hankey, who is #128 on Forbes’s 2023 list and #317 on the 2023 Forbes billionaires list, made his money in auto services. But he is also believed to be the largest shareholder in Axos Bank."

This is not the first time that Axos Bank has entered the picture in the Trump story, Rubin continued.

"It's the financial institution that refinanced Trump’s loans on Trump Tower and Doral in 2022. Specifically, Axos has loaned Trump $100 million in his refinancing of Trump Tower and another $125 million for Doral," she wrote. "Both loans are not due until 2032, according to the Office of Government Ethics disclosure Trump made in August 2023." She finished off with a table showing Trump's liabilities on that disclosure form.

All of this comes as Trump also appeals the $83.3 million judgment against him won by writer E. Jean Carroll in her defamation case, and as he stares down the first of his criminal trials, scheduled to start in Manhattan later this month.

ALSO READ: 11 ways Trump doesn’t become president

Rubin's summary of Hankey and Trump's relationship spurred lots of questions, and more than a little ridicule, on social media.

"So he got a loan from a used car salesman?" asked @ DittiePE .

"Wait, Trump got bailed out by Mr. Hankey?" asked @ this_aggression , in reference to the South Park character. "It’s Easter, not Christmas."

Politico reporter Erica Orden also shared the origin of Trump's bond with her readers and received similar replies.

"Thoughts and prayers for Knight Specialty Insurance Company's underwriting dept," replied @ agentmule .

"Hope he didn’t put up Truth Social stock as collateral," added @GreatGrey.

ALSO READ: Truth Social shares go into freefall after investors learn how much money it really makes

'Wasn't even funny!' Lara Trump outraged DNC mocked her with 'diss track'

Republican National Committee co-chair Lara Trump is shocked, shocked that the Democratic National Committee would dare mock her newly released song.

"This is where the DNC was putting their focus?" Lara Trump demanded on Fox News Monday night. "To somehow mock me? [It] wasn't even funny."

This strange new world in American politics was brought to us by artificial intelligence, which the DNC used to insult their political foe in sarcastic rendition of Lara's, the daughter-in-law of former President Donald Trump, single " Anything is possible ."

ALSO READ: The overlooked detail in Trump’s Bible sales pitch

“Oh Lara, Lara, what have you done?" the spoof song says. "The party's fallin' down, it's no longer fun.”

This critique, courtesy of AI, is not the first Lara Trump has faced since claiming the high-powered position as her father-in-law, the presumptive Republican nominee, prepares to face of against President Joe Biden in the upcoming election.

When Lara Trump asked Americans last month whether they were better off four years ago than today, many took to X to remind her that was when they found a global pandemic crashing down on them .

Then, when Lara Trump released her song, she received the request, " stop butchering songs ."

Lara's critique of the DNC's priorities was not shared with those who viewed her response to the national committee's battle of the not-quite bands on social media.

"She's really hurt," said @ jacktomalis . "You can't tell because of the botox, but she's crying inside."

"Republicans don't have a sense of humor" said @ Creampieordie . "Their bastion of comedy is Rob Schneider."

At least the @DNC has Ca$h to spend," quipped @1american10 , referencing reports of f undraising problems at the RNC .

"This is how I know they will lose in November," added X user @TrTweets . "By a landslide."

Watch the video below or click here .

Democrats want progressives (and everyone else) to watch entire Trump rallies

Neo-nazi leader charged with child abuse, domestic violence, coal miners pac hacked by cyberthieves.

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IMAGES

Court Report Example
Example of Request for Pre-Trial Conference
LAWS1052 Court Report Assignment
Deed of conveyance and deed of assignment
Introducting Law and Justice
Bail Application Assignment -Studocu

VIDEO

How to do the Select Cases Assignment
Social Media Assignment- KU Undergraduate Moot Court Club
SCW 2601 Assignment 1 Introduction to Law for Social Work 2024

COMMENTS

Assignments: The Basic Law
Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court, 35 Cal. 2d 109, 113-114 (Cal. 1950). An assignment will generally be permitted under the law unless there is an express prohibition against assignment ...
Legal Assignment: Everything You Need to Know
In other words, an assignment is the act of one party transferring, vesting, or causing to vest their interest in a property to another party. A valid legal assignment only occurs when all underlying elements of a lawfully binding contract are included in it, including intent. A trial court can determine if an assignment has occurred.
Assignment (law)
Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.
Assignees of a Claim
An assignment of a legal claim occurs when one party (the "assignor" ) transfers its rights in a cause of action to another party (the "assignee" ). 1. The Supreme Court has held that a private litigant may have standing to sue to redress an injury to another party when the injured party has assigned at least a portion of its claim for ...
What is a notice of assignment?
An assignment takes place when one party is holding a right to property, claims, bills, lease, etc., of another party and wishes to pass it along (or sell it) to a third party. As complicated as that sounds, it really isn't. Strangely enough, many assignments can be made under the law without immediately informing, or obtaining the permission,… Read More »
What is an Assignment? Legal Definition
Nevertheless, an anti-assignment clause cannot be included in an assignment that was issued or ordered by a court. Assignment vs. Novation. Novation occurs when a party would like to transfer both the benefits and burden of a contract to another party. This is similar to assignment in the sense that the benefits are transferred, but in this ...
assignment
assignment. Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.
Assignment Legal Definition: Everything You Need to Know
All parties must be legally capable. The objects being transferred must be legal. Consideration should be included. All parties must consent to the assignment. One of the most common forms of assignment is a wage assignment. For instance, if you owe child support, alimony, back taxes, or some other form of debt, the court can require your ...
How are federal judges assigned to cases?
Answer: The basic considerations in making assignments are to assure equitable distribution of caseload and avoid judge shopping. By statute, the chief judge of each district court has the responsibility to enforce the court's rules and orders on case assignments. Each court has a written plan or system for assigning cases. The majority of ...
assignee
Assignee is a person to whom a right is transferred by the person holding such rights under the transferred contract (the "assignor"). The act of transferring is referred to as "assigning" or "assignment" and is a concept found in both contract and property law. Contract Law Under contract law, when one party assigns a contract, the assignment represents both: (1) a transfer of ...
Assignment Order Lawyer
What Is an Assignment Order? Being sued by a creditor means the creditor is trying to collect a debt a person owes. If a creditor wins a lawsuit, it's called a judgment. Once the creditor has a judgment, it can collect the money owed by using an assignment order. An assignment order is a legal order allowing a creditor to go after property a ...
When Assigning the Right to Pursue Relief, Always Remember to Assign
The court also found that the grant of a power of attorney (that is, the power to sue on and collect on a claim) was "not the equivalent of an assignment of ownership" of a claim. 2013 WL 3762882 at *1, 2013 US Dist. LEXIS 100741 at *5.
Assignment of Judgment for California State Superior Court
An assignment is a commonly used method of transferring a cause of action." (Essex Ins. Co. v. Five Star Dye House, Inc. (2006) 38 Cal.4th 1252, 1259.) ... "An assignee of a right represented by a judgment may become an assignee of record by filing with the clerk of the court which entered the judgment an acknowledgment of assignment of ...
Individual Assignment System (IAS)
Individual Assignment System (IAS) The New York state court system that provides for the continuous supervision of each action or proceeding by a single judge. Actions and proceedings are randomly assigned to the judges of the court once a party files a request for judicial intervention (RJI). Certain categories of actions and proceedings, such ...
25-504 Order of assignment
The monthly amount of any current support and the monthly amount of any spousal maintenance ordered by the court. 3. The specific amount requested for any support arrearages, spousal maintenance arrearages or interest. 4. The name and address of the payor to whom it is requested the order of assignment be directed and the name of the person ...
PDF IN FAMILY LAW CASES
1. What is "Trial Assignment"? "Trial Assignment" is a court proceeding in which a Judge decides which family law cases scheduled for hearing the next court day are ready to proceed, how much time is needed for each hearing, and which Judges have time available to hear those cases. The Trial Assignment Judge then assigns the
Assignment of Judgment
The procedure for Assignments of Judgment in the Fairfax General District Court is as follows: The request for entry of the assignment in the court's records should be made by Praecipe referencing the case number and the names of the Plaintiff and Defendant as set forth in the original judgment. The Praecipe shall contain a certification that a ...
What is a Notice of Assignment from a court?
I understand that I can get my divorce in PA because I have been a resident for more than six months. He wants it done in Ohio. Today I received a letter titled Notice of Assignment. The body of the letter states Please be advised the above captioned matter is set for oral hearing for pre trial on a given date before a magistrate in Ohio.
PDF Assignment Court Frequently Asked Questions
Assignment Court will open 15 minutes prior to the start of session and priority may be given to matters that are first ready to proceed, so it is beneficial to arrive on time. If you arrive when court is already in session, please wait for your case to be called. Out of custody accused, parties and/or witnesses are not
What Is Wage Assignment?
The wage assignment can begin without a court order, although the laws about how much they can take from your paycheck vary by state. For example, in West Virginia, wage assignments are only valid for one year and must be renewed annually. Creditors can only deduct up to 25% of an employee's take-home pay, and the remaining 75% is exempt ...
What exactly is the "Notice of Case Assignment" as last page in CA
The Notice of Case Assignment has nothing to do with the attorney assigned to work the case. Rather, the Notice of Case Assignment tells you the name of the judge and the department to which the case has been assigned for all purposes. If you have any objection to the assigned judge, you must file your CCP 170.6 premptory challenge right away.
Circuit Assignments
Circuit Assignments. It is ordered that the following allotment be made of The Chief Justice and the Associate Justices of this Court among the circuits, pursuant to Title 28, United States Code, Section 42 and that such allotment be entered of record, effective September 28, 2022. For the Federal Circuit - John G. Roberts, Jr., Chief Justice.
What does case set on assignment call mean? Also what does case
I agree, its best if you speak with your lawyer about what exact court dates are set. After 6 1/2 years of litigation in a medical malpractice suit I would assume you have an attorney and he or she is in the best position to estimate for you when trial will take place. Unfortunately, sometimes the wheels of justice grind slow. Good luck at trial.
US Judge Shopping Curb Thwarted as Texas Court Resists (3)
Judiciary urged courts to change case assignment rules. The Northern District of Texas, which has come under fire for judge shopping practices by litigants, won't change its case assignment policies despite top judiciary officials calling for courts to alter them. The court's clerk confirmed that the policies won't be changed in an email ...
Breaking: Northern District of Texas Issues Nationwide Injunction
This court will not "make any change to our case assignment process at this time." Josh Blackman | 4.1.2024 1:41 PM The headline is an April Fool's joke, but the subheadline is 100% accurate.
PDF Order
SUPREME COURT OF NEW JERSEY It is ORDERED that retired Superior Court Judge John Tomasello, serving on recall pursuant to N.J.S.A. 43:6A-13 by the Court's Order of January 3, 2024, in addition to the assignment set forth in that Order, is hereby additionally temporarily assigned to the Family Division of Superior
PDF Judge John L. Call, Jr.
SUPREME COURT OF NEW JERSEY It is ORDERED that retired Superior Court Judge John L. Call, Jr., serving on recall pursuant to N.J.S.A. 43:6A-13 by the Court's Order of May 16, 2023, in addition to the assignment set forth in that Order, is hereby additionally temporarily assigned to the Family Division of Superior Court in
PDF First Judicial District of Pennsylvania Court of Common Pleas of
COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY _____ No. 5 of 2024 President Judge Administrative Order _____ In re: ELECTION DAY JUDICIAL ASSIGNMENTS 2024 Primary Election - Tuesday, April 23, 2024 ORDER AND NOW, this 28th day of March, 2024, the following Election Court assignments are made, which shall supersede other assignments during the ...
Judge John L. Call, Jr.
It is ORDERED that retired Superior Court Judge John L. Call, Jr., serving on recall pursuant to N.J.S.A. 43:6A-13 by the Court's Order of May 16, 2023, in addition to the assignment set forth in that Order, is hereby additionally temporarily assigned to the Family Division of Superior Court in Mercer County (Vicinage 7), effective immediately and until further order.
'She's stacking the deck': Jack Smith expected to quickly appeal Judge
The appeals court later overturned Cannon's decision, stating she had no authority to appoint a special master to review the documents. This ruling came as Trump faced charges for illegally ...