The claimant had been involved in mortgage frauds, using the defendant firm of solicitors. He claimed an account following sales of the properties. At the time of the sales, the first defendant knew of the false identities used. The defendants claimed that the money had been paid out, and that the claim was for the proceeds of illegal acts, and he was not entitled to any equitable relief.
Held: The houses had in fact been acquired by the claimant because of the use of powers of attorney, even though under a deceitful name. As to illegality, the documents were not executory, and as complete agreements were valid provided the claimant did not have to rely upon an illegal act. Defendants’ appeal dismissed.
Lord Justice Aldous Lord Justice Mance And Mr Justice Charles
[2001] EWCA Civ 1220, [2002] 1 P and CR DG3
Bailii
England and Wales
Citing:
Cited – In re Mahmoud and Ispahami 1921
A failure to plead an allegation in a later appeal where the facts at issue had been covered in the trial need not be fatal to that ground being added. . .
Cited – Birkett v Acorn Business Machines Limited CA 16-Jul-1999
The parties had entered into a contract, which both knew was to be used to defraud a third party finance company. When one sued the other for breach, the court refused to order the contract to be enforced when he became aware of the fraud.
Cited – Halifax Building Society v Thomas and Another CA 29-Jun-1995
Defrauded Mortgagee cannot take surplus on sale
A Building Society cannot keep any excess proceeds of sale of a house mortgaged to it by fraud. Policy was against unjust enrichment and will not allow a lender to take a profit from a fraudulent borrower.
Peter Gibson LJ said: ‘I remain wholly . .
Cited – Tinsley v Milligan HL 28-Jun-1993
Two women parties used funds generated by a joint business venture to buy a house in which they lived together. It was vested in the sole name of the plaintiff but on the understanding that they were joint beneficial owners. The purpose of the . .
Lists of cited by and citing cases may be incomplete.
Legal Professions, Registered Land, Contract
Updated: 28 November 2021; Ref: scu.147407