Casiopea Bovet LLC v. Chiang

A California Court of Appeal recently provided a reminder that under Code of Civil Procedure § 368, assignment of a right to recover money or other personal property (“a thing in action”) is subject to any defense existing at or before notice of the assignment, including defenses regarding the assignor’s corporate status. Thus, an assignee of rights held by a corporation suspended pursuant to California Revenue and Taxation Code § 22301 may face difficulty enforcing those rights while the assigning corporation remains suspended.