The Weekly Law Reports
[2009] 3 WLR 455
House of Lords
Stone & Rolls Ltd (in liquidation)
v
Moore Stephens (a firm)
[2009] UKHL 39
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 defence of ex turpi causa available to auditors— Whether defence overridden by fact that fraud relied on very thing auditors enagaged to prevent