Millman NO v Twiggs 1995 (3) SA 674 (A)

Millman NO v Twiggs 1995 (3) SA 674 (A)

Issue: Whether a cessionary of a right can enforce that right against the debtor of the cedent, even if the debtor is not aware of the cession.

Facts:

Millman NO (the cedent) was the owner of a claim against Continental Foods (Pty) Ltd (Continental) for the sum of R200 000. Millman NO ceded the claim to Twiggs (the cessionary). Continental was not aware of the cession.

Twiggs sued Continental for payment of the R200 000. Continental argued that it was not liable to Twiggs because it was not aware of the cession.

Key Facts:

• Millman NO (the cedent) was the owner of a claim against Continental Foods (Pty) Ltd (Continental) for the sum of R200 000.
• Millman NO ceded the claim to Twiggs (the cessionary).
• Continental was not aware of the cession.
• Twiggs sued Continental for payment of the R200 000.
• Continental argued that it was not liable to Twiggs because it was not aware of the cession.

Court's Decision

The Appellate Division (AD) held that Twiggs could enforce the claim against Continental, even though Continental was not aware of the cession. The AD reasoned that, once a claim has been ceded, the cessionary becomes the new owner of the claim and has the right to enforce the claim against the debtor of the cedent, regardless of whether the debtor is aware of the cession.

The AD also held that it was in the public interest to allow cessionaries to enforce claims against debtors who are not aware of the cession. The AD reasoned that this would promote the transferability of claims and would make it easier for businesses to finance their operations.

Application of the Law to the Facts of the Case

The AD applied the law to the facts of the case and found that Twiggs could enforce the claim against Continental, even though Continental was not aware of the cession. The AD ordered Continental to pay the R200 000 to Twiggs.

Conclusion

The AD's decision in Millman NO v Twiggs 1995 (3) SA 674 (A) is a significant case because it clarifies the law relating to the enforceability of ceded claims. The decision emphasizes that a cessionary can enforce a ceded claim against the debtor of the cedent, even if the debtor is not aware of the cession.

The decision also provides guidance to cessionaries and debtors on the law relating to the enforceability of ceded claims. Cessionaries should be aware that they can enforce ceded claims against debtors who are not aware of the cession. Debtors should be aware that they may be liable to cessionaries for ceded claims, even if they are not aware of the cession.