Akawa Australia Pty Ltd v Cassells

Akawa Australia Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's entitlement to recover certain payments made to the respondent.

The primary legal issue before the Court of Appeal was whether the appellant was entitled to recover payments made under a contract that was subsequently found to be void for illegality. Specifically, the court had to determine whether the doctrine of *ex turpi causa non oritur actio* (a claim arising from a wrongful act cannot be sustained) applied to preclude the appellant from recovering the money paid.

The Court of Appeal, in dismissing the appeal, applied the principle that where a plaintiff has paid money under a contract which is illegal, and the illegality is of a kind that taints the entire transaction, the plaintiff cannot recover that money. The court reasoned that the appellant's participation in the illegal contract meant it could not rely on the courts to assist it in recovering money paid in furtherance of that illegal purpose. The illegality was not merely incidental but fundamental to the agreement.

The appeal was dismissed.