We are often asked, “What is the difference between ‘Assignment’ and ‘Novation’?”.

A recent TCC Court case (Energy Works (Hull) Limited v MW High Tech Projects UK Limited [2020] EWHC 2537 (TCC)), set out a very useful summary of the legal principles relating to ‘Assignment’ and to ‘Novation’. These legal principles are summarised below.

Introduction
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In June of this year (2020), the UK Supreme Court issued its judgment in the Bresco Electrical Services Limited (in Liquidation) v Michael J Lonsdale (Electrical) Limited case in which the Court concluded that Insolvent companies enjoy the right to pursue adjudications, even against respondents that have a counter-claim or cross-claim.
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Many commentators saw this judgment as opening the floodgates to adjudications by Insolvent companies, but a more recent Court judgment, as set out below, demonstrate that there are, or may be, certain obstacles in the way of Insolvent companies successfully enforcing Adjudicator’s Decisions in their favour.