The Goodridge case is at an end, with the High Court refusing special leave to appeal on Friday 10 June. This means that the decision of the Full Federal Court, which allayed concerns about assignment transactions, especially securitisations, stands.
The decision at first instance had raised the possibility that the market's understanding of novation and assignment was incorrect.
Following the reversal of the first instance decision on appeal to the Full Federal Court and the subsequent refusal by the High Court to grant special leave for a further appeal, we now have confirmation that:
- the application of principles of assignment that had been assumed to be fundamental before the first instance judgment in fact are fundamental;
- the standard structures used to assign receivables are effective, not just from a legal perspective but also from a documentation and structural perspective; and
- the market's previous understanding of novations and notices to perfect legal title is correct.