Fitzroy v. Cave

2 K.B. 364 (1905)

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Nature of the Case

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Facts

P was a director of a company called Cork Mineral Development Company. The defendant was a co-director and local manager of the company. P was dissatisfied with D's performance and took assignment of debts due from D’s creditors with the view of procuring an adjudication in bankruptcy against D so he could be removed as a director. P obtained a deed from the five creditors of D whereby they assigned to P all the said debts and that he shall be able to recover and realize the amount of the said debts and immediately thereupon pay over to them, the assignors, the respective amounts, or so much thereof as he may be able to recover or realize after payment of all costs necessarily incurred by him. The judge determined that P acquired nothing but a bare right of litigation, giving him no interest in the proceeds, but enabling him to take collateral proceedings for an ulterior purpose. The judgment went for D and P appealed.