In Gerard Kenny v. Kenny Industries, 2012 IL App (1st) 111782, the Court ruled that members of a share purchase agreement cannot assign a debt owed to them arising out of one cause of action to use as a set off against a judgment in another cause of action because the individual members did not have the right to use the prior judgement as a set off on their own. An assignee cannot obtain a greator right that that possessed by the assignor. Therefore, the appellant cannot use a judgment debt as a set off because the assignors of that debt couldn’t use it individually as a set off.
Contract law update
