Facts
A. (the defendant) obtained a provisional release of debt in enforcement proceedings against B. (the plaintiff) for unpaid loan instalments. B. then filed an action for debt release with the District Court of Werdenberg, which granted the request on the grounds that the claim did not belong to the defendant. The defendant appealed to the Cantonal Court of St. Gallen, arguing that he had in the meantime been assigned the claim against the plaintiff. Nevertheless, the Cantonal Court upheld the decision of the District Court. The Federal Tribunal partially upheld the defendant's appeal and remanded the case to the Cantonal Court to examine the validity of the assignment.Considerations
According to the case law of the Federal Tribunal, it is not necessary for the defendant in the debt release action to already be the holder of the disputed claim at the time of service of the payment order. It is sufficient that he has it assigned to him after the issuance of the payment order, provided that the claim was already due at the time the enforcement proceedings were initiated.
When the claim is due at the time the enforcement proceedings are initiated, the fact that the defendant has it assigned to him after service of the payment order does not prejudice the debtor's situation. The debtor has the possibility of paying the debt to the actual creditor or of agreeing on a deferment of payment with him, thus preventing the effects of the subsequent assignment. The Federal Tribunal therefore considers that the debtor is not as deserving of protection as when the…