Case Details

Citation(s)
2016 SLG 2313 2016 SLD 2313 2016 SCMR 1637
Supreme Court of UK
BEFORE: Lord Neuberger, President, Lady Hale, DeputyPresident, Lord Mance, Lord Kerr, Lord Clarke, Lord Wilson,Lord Sumption, Lord Toulson and Lord Hodge
LORD NEUBERGER, PRESIDENT, LADY HALE, DEPUTY PRESIDENT, LORD MANCE, LORD KERR, LORD CLARKE, LORD WILSON, LORD SUMPTION, LORD TOULSON AND LORD HODGE

MIRZAVSPATEL

Law:

Section:

(a) Illegality--- ----Doctrine of---Illegality as a defence to a civil claim---Whether a defendant would be able to rely on the defence of illegality---"Reliance test" and "Range of factors" approach to the issue of illegality---Scope and relevance---[Per Lord Toulson, JSC, 'Reliance test' expressed in Tinsley v Milligan [1994] 1 AC 340, which was the authority for the illegality defence, should no longer be followed as it resulted in inconsistent and unjust outcomes---New test for the defence of illegality was the "range of factors" approach, whereunder the court had to consider, first the underlying purpose of the prohibition which had been transgressed and whether that purpose would be enhanced by denial of the claim; second, any other relevant public policy on which the denial of the claim may have an impact, and, third whether denial of the claim would be a proportionate response to the illegality]---[Per Lord Kerr; Rule-based approach to the question of illegality, exemplified in Tinsley v Milligan [1994] 1 AC 340, failed to deliver predictability---Court should apply a more flexible approach, taking into account the policy considerations that were said to favour recognising the defence of illegality]---[Per Lord Neuberger: When faced with a claim based on a contract which involved illegal activity the court should, when deciding how to take into account the impact of the illegality on the claim, bear in mind the need for integrity and consistency in the justice system, and in particular the policy behind the illegality; any other public policy issues, and the need for proportionality]---[Per Lord Mance (Minority view): Whatever shortcomings the "reliance test" may have, it did not justify tearing up the existing law and starting again---Court should adopt a limited approach to the effect of illegality, focused on the need to avoid inconsistency in the law, without depriving claimants of the opportunity to obtain damages for wrongs or to put themselves in the position in which they should have been---'Range of factors' approach to the issue of illegality would be too vague and potentially too wide, requiring courts to make value s in an unspecific and…
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