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On appeal from: [2008] EWCA Civ 644. Whether ex turpi causa provides a defence to the claim advanced by the appellant is the preliminary issue raised by this appeal.

The appellants sought to recover losses caused to them in consequence of the extension of the period of their fraudulent activity that they submitted was caused by the respondent’s breach of duty. Appeal allowed. The critical issue before the House was ultimately whether auditors should in the performance of their contractual and tortious duties towards a company, have detected and then have reported to the appropriate authorities a scheme of fraud by top management rendering the company as a separate legal person increasingly insolvent, owe any enforceable duty towards the company to do this, so avoiding further loss to the company. In the Court’s view, they did.

For judgment, please download: [2009] UKHL 39
On appeal from: [2008] EWCA Civ 644

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