Does the phrase "this Agreement or any interest in it" include an interest in a cause of action for breach of the agreement?

California, United States of America


The following excerpt is from Land Lot 1, LLC v. City of Bakersfield, F061621 (Cal. App. 2012):

The city argues that the phrase "this Agreement [or] any interest in it" includes an interest in a cause of action for breach of the agreement. We disagree. In Comunale v. Traders & General Ins. Co. (1958) 50 Cal.2d 654, the insurer invoked a clause in an insurance policy it issued, which provided that an assignment of an interest under the policy would be binding only with the insurer's consent; the court applied the "well settled [rule] that such a provision does not preclude the transfer of a cause of action for damages for breach of a contract." (Id. at pp. 661-662.) Balfour indicates that, where a cause of action for breach of contract has already accrued, a nonassignment clause does not preclude assignment of that cause of action. (Balfour, supra, 227 Cal.App.2d at pp. 187-188.)

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