Precedent and policy prohibit the assignment of debtors’ legal-malpractice claims to a creditor. That’s what Houston’s 14th Court of Appeals held on July 22 in InLiner Americas Inc., et al. v. MaComb Funding Group .
The case involves three companies sued by a creditor for defaulting on a loan. The companies then signed a security agreement in which they granted MaComb, the creditor, a security interest in certain of their assets, identified as “Collateral” in the agreement. The question before the 14th Court was whether unrelated legal-malpractice claims that the companies brought against attorneys and firms who represented them in a separate patent suit were part of the collateral.
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