Illegality After Patel v Mirza

Illegality After Patel v Mirza - Sarah Green

Patel v Mirza [2016] UKSC 42 is an English contract law case concerning the scope of the illegality principle relating to insider trading under section 52 of the Criminal Justice Act 1993. Mr Patel paid £620,000 to Mr Mirza pursuant to an agreement under which Mr Mirza would bet on the price of some shares, on the basis of insider information. Using advance insider information to profit from trading in securities is an offence under section 52 of the Criminal Justice Act 1993. The scheme did not come to fruition as the expected insider information was mistaken. Thereafter, Mr Patel brought a claim based on contract and unjust enrichment for the return of £620,000. Mr Mirza argued that no such obligation could be enforced because the whole contract was illegal. and any claim would be precluded by the principle of ex turpi causa non oritur actio.