The Law Reports (Appeal Cases)
[2009] AC 1391
House of Lords
Stone & Rolls Ltd (in liquidation)
v
Moore Stephens (a firm)
[2008] EWCA Civ 644
[2009] UKHL 39
2008 March 11,
12,
13;
June 18
June 18
Mummery, Keene, Rimer LJJ
2009 Feb 10,
11,
12;
July 30
July 30
Lord Phillips of Worth Matravers, Lord Scott of Foscote, Lord Walker of Gestingthorpe, Lord Brown of Eaton-under-Heywood, Lord Mance
Company— Fraud— Knowledge of company— Company used as vehicle to procure funds from bank for sham commercial transactions— Bank’s successful action against company and director resulting in company’s insolvency— Company’s claim for damages for auditors’ failure to detect fraud— Whether actions of fraudster to be attributed to company— Whether defence of ex turpi causa available to auditors— Whether defence overridden by fact that fraud relied on very thing auditors enagaged to prevent