In cases not governed by the uniform commercial code the assignment of a thing in action shall be without prejudice to any defense, counterclaim or claim matured or not, if matured when pleaded, existing against the assignor in favor of the party pleading it.
Rule 1.205.Assignees; exception
Division II: Actions, Joinder of Actions and Parties · Last amended February 15, 2002 · Last verified July 15, 2026
In one sentenceRule 1.205 preserves, outside the uniform commercial code, an assignee's exposure to any defense, counterclaim, or claim that existed against the assignor and was matured when pleaded, so an assignment does not strip the original obligor of rights it already had.
Full Text of Rule 1.205
Plain-English Summary
When a claim is assigned, the person who now owns it steps into the assignor's shoes for purposes of suing on it. Rule 1.205 makes clear that the assignee also inherits the assignor's exposure. In cases not governed by the uniform commercial code, an assignment of a thing in action is made without prejudice to any defense, counterclaim, or claim existing against the assignor in favor of the party the assignee is now suing — so long as that defense, counterclaim, or claim was matured at the time it is pleaded.
The practical effect is to protect the original obligor. If that person had a valid defense or counterclaim against the assignor before the assignment, the assignment does not erase it. The obligor can still raise it against the assignee who is now pursuing the claim, provided the defense or counterclaim had matured by the time it is pleaded in the case.
The rule expressly limits its own reach: it applies to cases not governed by the uniform commercial code. Where the code applies to the transaction, its own rules on an assignee's rights and an obligor's defenses control instead of this general rule.
Frequently Asked Questions
If a claim against me is assigned to someone else, do I lose the defenses I had against the original creditor?
Not under Rule 1.205. In cases outside the uniform commercial code, the assignment is made without prejudice to any defense or counterclaim you had against the assignor, as long as it was matured when you pleaded it.
Does this rule apply to assignments governed by the uniform commercial code?
No. Rule 1.205 expressly applies only in cases not governed by the uniform commercial code; transactions the code covers follow its own rules on an assignee's rights and an obligor's defenses.
What does it mean for a defense or counterclaim to be 'matured when pleaded'?
It means the underlying right must have become due and enforceable by the time you raise it in your pleading, not merely that it existed at some earlier point in an unmatured form.
Can I raise a counterclaim against the assignee that I originally had against the assignor?
Yes, if it existed in your favor against the assignor and was matured when pleaded. Rule 1.205 preserves that counterclaim despite the assignment.
What is a 'thing in action' under this rule?
It refers to a right to sue for money or property that has not yet been reduced to possession, such as a debt or contract claim, which is what gets assigned in the situations Rule 1.205 addresses.
Source & verification. Rule text and the Comment are
reproduced verbatim from the Iowa Rules of Civil Procedure, adopted by the
Iowa Supreme Court. Last verified July 15, 2026.
· Official source
Also known as: iowa assignee defenses ruleassignment of claim defenses iowacounterclaim against assignee iowauniform commercial code exception iowa assignment