Stone and Rolls (in Liquidation) v Moore Stephens (a Firm)
House of Lords
“A company, exclusively controlled by a single director so as to be primarily liable for frauds committed against third parties, could not bring a claim for damages against its auditors on the basis that they had failed to detect the fraudulent activities, that they were engaged to prevent since any such claim would be based on the company’s own illegal conduct and was accordingly debarred by the defence of ex turpi causa non oritur actio.”
The Times, 11th August 2009
Source: www.timesonline.co.uk
