CPLC Seminar series: 'Merger Fallacy Diagnosed: Debt, Judgment, and Security'

Speaker: Mr Jonathan Chu (University of Cambridge)

It is a widely held assumption that, once a creditor has recovered money judgment against a debtor for the non-payment of a contractual debt, that debt is merged in and extinguished by the judgment, with the result that the right to payment pursuant to the judgment becomes the creditor’s sole right. This assumption is mistaken. It is true that, post judgment, the creditor is barred from suing the debtor a second time, even if the judgment does not tally with the creditor’s full contractual entitlement. For an unsecured creditor, this may give the impression that the contractual debt is gone and replaced by a new debt born of the judgment. An examination of the position of a secured creditor reveals this to be an illusion. The contractual debt is not gone; it is merely unactionable a second time, as a matter of procedure. Several historical factors worked together to generate confusions that led to—and still perpetuate—the merger fallacy.

Open to Faculty members, visitors, invitees and LLM/MCL/PhD students only.

Sandwiches served in G24 from 12.30pm; seminar to commence at 1pm.

We hope that you can make it to these exciting events: Eugene Shevchuk & Fleur Stolker (Convenors)

The Cambridge Private Law Centre acknowledges with gratitude the generous financial support of XXIV Old Buildings and of South Square.