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Stoffel & Co. v Grondona [2020] UKSC 42

By Oxbridge Law TeamUpdated 07/01/2024 20:50

Judgement for the case Stoffel & Co. v Grondona


  • Where a claimant has been induced into an illegal transaction by a defendant's negligence or breach of duty, the defence of illegality should not automatically prevent the claimant from pursuing a negligence claim.

  • The purpose of the defence of illegality is to protect the integrity of the legal system, not to allow negligent parties to escape liability for their actions.


  • Ms. Grondona engaged the services of Stoffel & Co., an unregulated investment firm, to manage her investments. However, the firm was unlicensed and operated in breach of statutory regulations.

  • Ms. Grondona sought to recover her investments and claimed that Stoffel & Co. had been negligent in managing her funds.

  • The defendants raised the defence of illegality, arguing that Ms. Grondona's claim should be barred because she had knowingly participated in an illegal investment scheme.

  • The question before the court was whether the defence of illegality should prevent Ms. Grondona from pursuing her negligence claim.


  • Stoffel & Co. v Grondona is a significant case that provides a clearer framework for the application of the defence of illegality in tort law.

  • By allowing the negligence claim to proceed, the court acknowledged that there are circumstances where public policy considerations should not bar the pursuit of remedies for genuine wrongs suffered by claimants.


  • This case is recommended to be read in connection to Patel v Mirza

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