State ex rel. Adjustment Co. v. Superior Court
State ex rel. Adjustment Co. v. Superior Court
Opinion of the Court
The Adjustment Company, a corporation, brought suit against the Pacific Knitting Mills, a corporation, in the superior court of King county, to recover a balance due upon the price agreed to be paid for certain attachments, to be used on knitting machines, sold by Ellsworth L. Ward and George J. Wolf, operating under the trade-name of Climax Machine Company. Interrogatories were propounded by the defendant, and it is made to appear by the answers thereto that no consideration passed from the Adjustment Company for the assignment of the account, and that its only interest is that of a collection agency to collect the balance due. The Pacific Knitting Mills answered, setting up several defenses; among others, that The Adjustment Company is not the real party in interest, and that
Waiving other questions raised by the parties, we are convinced that the writ should not issue, notwithstanding this court has uniformly held that an assignee of an account or chose in action could maintain a suit in his own name, although such an assignment is made for the purpose of collection only, and the assignee had no other interest in the thing assigned. The sum of our holdings is that an assignee has sufficient interest to maintain the suit. Conaway v. Co-Operative Homebuilders, 65 Wash. 39, 117 Pac. 716; Von Tobel v. Stetson & Post Mill Co., 32 Wash. 683, 73 Pac. 788; McDaniel v. Pressler, 3 Wash. 636, 29 Pac. 209; Riddell v. Prichard, 12 Wash. 601, 41 Pac. 905; Barto v. Seattle & International R. Co., 28 Wash. 179, 68 Pac. 442.
In such cases, however, the defendant may avail himself of any defense or set-off existing against the assignor at the time the assignment was made. Rem. & Bal. Code, § 265; 15 Ency. Plead. & Prac., 709. Such defenses will not, however, support an affirmative judgment. They operate only as a bar to the present action. The same authority (Rem. & Bal. Code, § 191) which sustains the right of an assignee to sue at law in his own name also gives the right to a defendant to “set forth by answer as many defenses and counterclaims
Writ denied.
Dunbar, C. J., Morris, Crow, and Ellis, JJ., concur.
Reference
- Full Case Name
- The State of Washington, on the Relation of The Adjustment Company v. The Superior Court for King County
- Cited By
- 7 cases
- Status
- Published
- Syllabus
- Parties — Bringing in New Parties — Assignments—Equitable Defenses Against Assignor. In an action upon an assigned account, where the defendant sets up equitable defenses seeking equitable relief against the assignor, the court has power to require the assignor to be made a party to the end that a complete determination of the controversy may be had, under Rem. & Bal. Code,- § 273, giving the defendant the right to set forth legal or equitable defenses, and § 196, authorizing the court to bring in the real parties in interest.