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Sanger v. Upton, Assignee

• 1875 • 91 U.S. 56 • Waite Court
Sanger v. Upton, Assignee was a United States Supreme Court case that dealt with the issue of whether a debtor could be held liable for a debt that was assigned to another party. The case involved a dispute between a debtor, Sanger, and his assignee, Upton. Sanger had entered into a contract with a third party, and the contract was assigned to Upton. Sanger then failed to pay the debt, and Upton sued him for the amount due. The Supreme Court held that Sanger was liable for the debt, even...Open Case
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Chief Waite Court
Term: 1875
Docket: 35
91 U.S. 56
23 L. Ed. 220
1875 U.S. LEXIS 1334
Argued: Nov 08, 1875

Sanger v. Upton, Assignee

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Opinion Summary
AI Abstract

Sanger v. Upton, Assignee was a United States Supreme Court case that dealt with the issue of whether a debtor could be held liable for a debt that was assigned to another party. The case involved a dispute between a debtor, Sanger, and his assignee, Upton. Sanger had entered into a contract with a third party, and the contract was assigned to Upton. Sanger then failed to pay the debt, and Upton sued him for the amount due. The Supreme Court held that Sanger was liable for the debt, even though it had been assigned to Upton. The Court reasoned that the assignment of the debt did not extinguish Sanger's liability, as the assignment was merely a transfer of the right to collect the debt. The Court also held that the assignment did not create a new contract between Sanger and Upton, as the original contract between Sanger and the third party remained in effect. In conclusion, the Supreme Court held that Sanger was liable for the debt, even though it had been assigned to Upton. The Court reasoned that the assignment of the debt did not extinguish Sanger's liability, and that the assignment did not create a new contract between Sanger and Upton.

Dissent Summary
AI Abstract

In Sanger v. Upton, Assignee, the Supreme Court was asked to decide whether a contract between two parties that had been assigned by one of them could be enforced against the assignor. The majority held that it could not because there was no privity of contract between the assignor and the assignee; however, Justice Miller dissented from this decision. He argued that although there is generally no privity of contract when an assignment occurs, in this case there were special circumstances which should have allowed for enforcement against both parties. Specifically, he noted that at the time of contracting both parties knew about and consented to a future assignment by one party and thus they should be bound by their agreement even after such an assignment occurred. Furthermore, he argued that allowing enforcement would prevent injustice as it would ensure contractual obligations are fulfilled regardless of any subsequent assignments or transfers made by either party involved in said contracts.

Opinion written by Justice NHSwayne
Decided: Nov 29, 1875
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