Stoffel & Co v Grondona

Stoffel & Co v Grondona

The claimant's participation in mortgage fraud did not preclude recovery against the negligent solicitor, as denial of the claim would not serve the underlying purpose of the prohibition, and would be disproportionate given the circumstances. Damages are limited to the value of the property at the time of breach, not the ongoing mortgage indebtedness.

Parties
Appellant/cross Respondent: Stoffel & Co; Respondent/cross Appellant: Ms Maria Grondona
Jurisdiction
England and Wales
Judgment Date
13 September 2018
Procedural Posture
Civil Appeal / Judgment on Appeal and Cross Appeal
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Negligence, Breach of Contract, Illegality Defence, Mortgage Fraud, Quantum of Damages
Contract Law Tort Law Property Law Negligence Breach of Contract Illegality Defence Mortgage Fraud Quantum of Damages

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Parties

Stoffel & Co

Appellant/cross Respondent

Ms Maria Grondona

Respondent/cross Appellant

Procedural Posture

Civil Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 Whether the claimant's participation in mortgage fraud precludes recovery against the defendant under the illegality principle
  2. 2 Appropriate method for calculation of damages in solicitor negligence cases involving illegal transactions

Ratio Decidendi

The claimant's participation in mortgage fraud did not preclude recovery against the negligent solicitor, as denial of the claim would not serve the underlying purpose of the prohibition, and would be disproportionate given the circumstances. Damages are limited to the value of the property at the time of breach, not the ongoing mortgage indebtedness.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • Claimant permitted to recover damages for solicitor negligence
  • Damages limited to £78,000 plus interest from 30 November 2009 at 3% over Bank of England base rate