Illegality – No Bar To Recovery

In the case of Patel v Mirza 2016 UKSC 42 Mr Patel was entitled to restitution of £620,000.00 given to Mr Mirza to place bets on a bank's share price with the benefit of insider information. Mr Mirza's expectations were not fulfilled and the intended betting did not take place.

Lord Toulson delivering the leading judgment, departed from the reliance test expressed in Tinsley v Milligan [1994] 1 AC 240, which bars the claimant if he relies on the illegality in order to bring the claim. The judgment also suggests that Holman v Johnson [1775] 1 Cowp 341, where Lord Mansfield said "no court will lend its aid to a man who founds his cause of action upon an immoral or illegal act", will not be followed in all cases.