Public Policy CASES

In English law, public policy refers to legal principles designed to protect societal interests, morals, and values by restricting contractual or legal outcomes that are harmful or against the public good.

Definition and Principles

Public policy acts as a safeguard, preventing agreements or actions that contravene established ethical standards, societal well-being, or essential justice principles, regardless of parties’ intentions.

Common Applications

  • Contracts Promoting Illegality: Agreements involving illegal activities.
  • Restraint of Trade: Excessively restrictive clauses limiting competition.
  • Contracts Interfering with Justice: Agreements obstructing the course of justice or undermining legal processes.

Legal Consequences

Agreements violating public policy are generally unenforceable, and courts refuse to uphold terms detrimental to societal interests.

Practical Importance

Recognising public policy ensures contracts and legal arrangements adhere to broader societal ethics, maintaining fairness, justice, and societal harmony.

Folgate London Market Ltd v Chaucer Insurance plc [2011] EWCA Civ 328

Folgate agreed to indemnify Milbank under a settlement agreement containing a clause releasing Folgate from payment if Milbank became insolvent before payment was due. When Milbank entered administration, Chaucer (as assignee) challenged the clause. The Court of Appeal held clause 11 void as infringing the anti-deprivation principle.

Glamorgan CC v Glasbrook Bros Ltd [1924] UKHL 3 (19 December 1924)

During a coal strike, colliery owners requested police be billeted at their premises to protect safety men working the pumps. The police superintendent believed a mobile force would suffice but agreed to provide a garrison upon the owners signing a requisition promising payment. The House of Lords held that where police provide services beyond their strict obligations at a party's specific request, payment can lawfully be charged.

Gray v Thames Trains [2009] UKHL 33 (17 June 2009)

Mr Gray suffered PTSD from the Ladbroke Grove rail crash caused by the defendants' negligence. Under the effects of this condition, he killed a pedestrian and was convicted of manslaughter with diminished responsibility. He claimed damages for loss of earnings during detention. The House of Lords held public policy precluded recovery for consequences of his own criminal act.

JD v East Berkshire Community Health NHS Trust [2005] UKHL 23

Parents wrongly suspected of child abuse sought damages for psychiatric injury caused by doctors' negligent misdiagnosis. The House of Lords held that healthcare professionals investigating child abuse owe no duty of care to parents, only to the child, due to the potential conflict of interest between protecting children and parents' interests.

Kuwait Airways Corp v Iraqi Airways Co (Nos 4 and 5) [2002] UKHL 19

Iraqi Airways incorporated Kuwait Airways' aircraft into its fleet following Iraq's invasion of Kuwait. The House of Lords held that Iraq's decree transferring ownership was contrary to public policy as it violated established international law, and refused to recognise it. Kuwait Airways succeeded in claims regarding aircraft recovered from Iran.

Lewis-Ranwell v G4S Health Services (UK) Ltd and others No 2 [2026] UKSC 2

A man who killed three people during a psychotic episode was found not guilty of murder by reason of insanity. He sued healthcare providers for negligence, claiming damages for his detention and other losses. The Supreme Court held that the illegality defence barred his civil claim despite his lack of criminal responsibility, as allowing recovery would damage the integrity of the legal system.

R v Brown [1993] UKHL 19 (11 March 1993)

Five men engaged in consensual sadomasochistic homosexual activities were convicted of assault occasioning actual bodily harm and wounding. The House of Lords held that consent is no defence to charges under sections 20 and 47 of the Offences Against the Person Act 1861 where actual bodily harm is deliberately inflicted, regardless of consent between adults in private.

Rondel v Worsley [1967] UKHL 5

A convicted criminal sued his barrister for negligence in conducting his defence at trial. The House of Lords unanimously held that barristers enjoy immunity from negligence claims arising from their conduct of litigation, based on public policy considerations including the barrister's duty to the court and the administration of justice.

Rush & Tompkins Ltd v Greater London Council [1988] UKHL 7

Rush & Tompkins, a main contractor, settled with GLC but faced a subcontractor's claim. The subcontractor sought discovery of 'without prejudice' settlement correspondence. The House of Lords held that without prejudice communications are protected from discovery by third parties in connected litigation to encourage settlement negotiations.

Shaw v DPP [1961] UKHL 1

Shaw published 'Ladies Directory' containing advertisements for prostitutes with photographs and details of services offered. He was convicted of conspiracy to corrupt public morals, living on earnings of prostitution, and publishing an obscene publication. The House of Lords upheld the conviction, affirming that conspiracy to corrupt public morals is an indictable common law offence.

Van Duyn v Home Office (C41/74) [1974] EUECJ R-41/74

A Dutch national was refused entry to the UK to work for the Church of Scientology, which the UK government considered socially harmful. The ECJ ruled that Article 48 EEC Treaty and Directive 64/221 have direct effect, allowing individuals to rely on them in national courts, while Member States retain discretion on public policy grounds.