Illegality defence CASES

In English law, the illegality defence prevents a claimant from enforcing rights or obtaining relief where the claim is closely connected to the claimant’s own illegal conduct.

Definition and principles

The defence is based on the principle that the courts should not assist a person to profit from their own wrongdoing. It applies across several areas of law, including contract, tort, and unjust enrichment.

The modern approach was clarified by the Supreme Court in Patel v Mirza, which rejected rigid rules in favour of a principled, flexible assessment.

Legal test

When considering whether the illegality defence applies, the court examines three key factors: the underlying purpose of the law that has been breached, any other relevant public policies, and whether denying the claim would be a proportionate response to the illegality.

Legal implications

If the defence succeeds, the claim may fail entirely, even where the defendant has acted improperly. However, the defence will not apply where doing so would undermine the purpose of the law or lead to disproportionate injustice.

Practical importance

The illegality defence promotes consistency between private law remedies and public law objectives, while allowing courts flexibility to reach just outcomes.

Law books on a desk

Bilta (UK) Ltd v Nazir [2015] UKSC 23

Bilta’s liquidators sued its former directors and their co-conspirators for losses caused by a VAT carousel fraud. The directors had breached their fiduciary duties by causing Bilta to participate in fraudulent transactions. The Supreme Court held that the illegality defence was not available to the defendants because attributing the directors’...

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Pitts v Hunt [1990] EWCA Civ 17

An 18-year-old pillion passenger, jointly engaged with a drunk, unlicensed rider in a reckless and illegal motorcycling escapade, was seriously injured in a collision. The Court of Appeal held that public policy barred his negligence claim against the rider’s estate, despite statutory abolition of volenti. Facts The appellant, Andrew James...