Tuesday, April 9, 2013

Herman Allhusen v. Caristo Construction Corp. case brief

Herman Allhusen v. Caristo Construction Corp. case brief summary
303 N.Y. 446, 103 N.E.2d 891 (1952)

CASE SYNOPSIS:
Plaintiff assignee appealed from a judgment of the Appellate Division of the Supreme Court in the First Judicial Department (New York), which affirmed an order granting defendant general contractor's motion for summary judgment dismissing plaintiff's complaint seeking to recover from defendant money owing for work done by a subcontractor.

CASE FACTS:
-Defendant, a general contractor, subcontracted with a painting company for certain painting work in the public schools.
-Their contract contained an anti-assignment clause.
-The company subsequently assigned certain rights under the contract to another company, which in turn assigned the rights to plaintiff.
-Plaintiff sought to recover money due and owing for work done by the painting company.
-Defendant filed a motion for summary judgment.

HOLDING:
On appeal, the court affirmed the grant of defendant's motion for summary judgment dismissing plaintiff's complaint because the anti-assignment clause was a valid and effective restriction of the right to assign.
-The court held that where clear language has been used, and the plainest words have been chosen, parties may limit the freedom of alienation of rights and prohibit the assignment.

RULES:
-When the language is clear, a party can forbid assignment of payment on a contract

OUTCOME: The court affirmed the lower court's grant of defendant's motion for summary judgment dismissing plaintiff assignee's complaint.

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