Recent Jurisprudence – Notices of Assignment of Debtor Rights

October 17, 2010
Recent Jurisprudence – Notices of Assignment of Debtor Rights

Recently, Mexico’s Supreme Court of Justice (Suprema Corte de Justicia de la Nación or SCJN) published, in the Judicial Weekly of the Federation, case decisionnumber III.2o.C.J/29 under the heading, “Assignments of rights to third parties. Notice to the debtor is not a necessary requirement for such assignment to take effect.”In this case, the SCJN confirmed that, as provided in articles 2030 through 2034 and 2036 of the Federal Civil Code, “notice of an assignment of rights does not constitute a transfer, so that the only consequence of the omission of such notice is that the debtor will be released from its obligation to pay the creditor by paying the original creditor to the detriment of the assignee.” In this sense, Mexico’s highest court deems a notice of assignment of rights to a debtor as an act that benefits the assignee of the original creditor and not the debtor because a debtor’s lack of a notice implies that such debtor only has an obligation to pay the original creditor to the detriment of the assignee, who would not receive payment on the rights assigned from the assignor and, as a consequence, would have to pursue its rights against the assignor or the original creditor.

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