Assignment of Rights

Case: Continental Purchasing Co. v. Van Raalte Co. (1937) [pp. 1093-1097]
295 N.Y.S. 867

Facts: Mrs. Potter, employee of Van Raalte, assigned wages earned as security
for payment of an account she had with Steckler Sporting Goods. This was then
assigned to Continental. Van Raalte was notified of the assignment, but paid Mrs.
Potter, and not the assignee. Continental brought this action to recovery the
amount owed, and Van Raalte says he doesn’t owe this b/c it was already paid to
Mrs. Potter (This was done before statute that restricting assignability of
wages).

Issue: Whether a debtor is liable for paying his indebtedness to an assignor

rather than an assignee?

Holding/Reasoning: If a debtor who has been given notice of an assignment pays an

assignor any money that, under the assignment, belongs to the assignee, or if he
does anything prejudicial to the rights of the assignee, the debtor is liable to
the assignee for any resulting damages.