GRIFFIN V UHY HACKER YOUNG & PARTNERS

[2010] EWHC 146 (Ch), Chancery Division, Mr Justice Vos, 4 February 2010

Negligence - Claimant asserting that negligent advice caused him to commit a criminal offence - Recovery of damages - Ex turpi causa non oritur actio

The claimant had been a director of a company which had gone into insolvent liquidation, and he was thereby prohibited by section 216 of the Insolvency Act 1986 from becoming a director of a company using the same name without giving notice to the creditors or obtaining the permission of the court. The offence was one of strict liability, so no mens rea was required. Acting on advice from the defendant "turnaround" specialists, he contravened this provision and was convicted and fined £1,000. The claimant sought damages for breach of duty in the form of the provision of negligent advice, and claimed both the amount of the fine and various consequential losses in the form of loss of earnings and effect on a shareholding. The defendant sought to have the claim struck out on the ground that it was based on an unlawful act, contrary to the principle ex turpi causa non oritur action. Vos J refused to strike out the action.