Patel (Respondent) v Mirza (Appellant)

[2016] UKSC 42
UKSC 2014/0218
Patel (Respondent) v Mirza (Appellant)
On appeal from the Court of Appeal (Civil Division) (England and Wales)
Mr Patel (the respondent) transferred £620,000 to Mr Mirza (the appellant) so that Mr Mirza could use it to bet on share price movements based on inside information. Insider dealing is illegal under Part V of the Criminal Justice Act 1993. The inside information was not forthcoming and the agreement was not carried out. Mr Patel has not received the money back from Mr Mirza. In his pleadings at first instance (basing his claim on unjust enrichment and/or a Quistclose trust), Mr Patel set out the facts of the illegal agreement. This appeal considers whether the respondent is entitled to recover money transferred to the appellant in furtherance of a contract entered into for an illegal purpose from which the respondent only withdrew once it could no longer be performed.
The Supreme Court unanimously dismisses Mr Mirza’s appeal. Mr Patel is entitled to restitution of the £620,000 which he paid to Mr Mirza.