header-logo header-logo

27 January 2011 / Tony Hill , Kate Thompson
Issue: 7450 / Categories: Features , Professional negligence
printer mail-detail

A matter of principle

Tony Hill & Kate Thompson revisit the illegality defence

The much analysed House of Lords’ decision in Stone & Rolls v Moore Stephens [2009] UKHL 39 focused  on the “illegality principle” (ex turpi causa non oritur actio) as a defence for claims against professionals. Given the economic climate, it is likely that insolvency practitioners will increasingly be engaged in civil claims to recover losses on behalf of creditors, so, given Stone & Rolls, practitioners should familiarise themselves with the operation of the ex turpi line of defence where the facts (often involving insolvency) permit its application.

The illegality principle is relevant in any case where a claimant seeks to base a civil action on his own criminal wrongdoing. In the professional negligence context the issue is most likely to arise in claims brought by companies against their professional advisers where a fraud has been committed by the managers of the company and which is alleged to have caused the company loss. Typically the allegation will be that the professional  has

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Should a conviction stand when a later ruling reveals that the law underpinning it was wrong? The answer exposes a clash between finality and justice
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
back-to-top-scroll