KHAN AGAINST MUHAMMAD ZUBAIR HUSSAIN [2019] ScotCS CSOH_11 (08 February 2019)

KHAN AGAINST MUHAMMAD ZUBAIR HUSSAIN [2019] ScotCS CSOH_11 (08 February 2019)

The pursuer is barred from recovering damages for losses resulting from regulatory sanctions imposed for his own dishonest conduct by the doctrine of ex turpi causa non oritur actio. The rule applies to regulatory sanctions as well as criminal sentences, and is not limited to corporate cases. The pursuer's breach involved dishonesty, as found by the Upper Tribunal, and public policy requires consistency between courts and regulators. Accordingly, the defender's plea is upheld and the action dismissed.

Citation
[2019] ScotCS CSOH_11
Parties
Pursuer: Amir Khan; Defender: Muhammad Zubair Hussain
Jurisdiction
Scotland
Judgment Date
08 February 2019
Procedural Posture
Civil Action for Breach of Contract and Professional Negligence / Outer House, Court of Session, Debate on Pleas in Law
Outcome
action dismissed
Legal Topics
Ex Turpi Causa Non Oritur Actio, Prescription, Damages, Regulatory Sanctions, Dishonesty
Contract Professional Negligence Regulatory Law Public Policy Ex Turpi Causa Non Oritur Actio Prescription Damages Regulatory Sanctions +1 more

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Parties

Amir Khan

Pursuer

Muhammad Zubair Hussain

Defender

Procedural Posture

Civil Action for Breach of Contract and Professional Negligence / Outer House, Court of Session, Debate on Pleas in Law

Legal Issues

  1. 1 Whether the pursuer can recover damages for losses resulting from regulatory sanctions imposed for his own dishonest conduct
  2. 2 Whether the action is barred by the doctrine of ex turpi causa non oritur actio
  3. 3 Whether the claim is prescribed under the Prescription and Limitation (Scotland) Act 1973

Ratio Decidendi

The pursuer is barred from recovering damages for losses resulting from regulatory sanctions imposed for his own dishonest conduct by the doctrine of ex turpi causa non oritur actio. The rule applies to regulatory sanctions as well as criminal sentences, and is not limited to corporate cases. The pursuer's breach involved dishonesty, as found by the Upper Tribunal, and public policy requires consistency between courts and regulators. Accordingly, the defender's plea is upheld and the action dismissed.

Court Disposition

action dismissed

Orders

  • Defender's third plea in law upheld; action dismissed.