Clients Barred from Blaming Lawyer for Consequences of Clients' Illegal, Immoral or Wrongful Conduct: North Carolina Court of Appeals Reaffirms In
Pari Delicto Defense in Legal Malpractice Actions by William Graebe and Dan Zureich (September 2017)
Fraud and Other Tort Claims and the In
Pari Delicto Problem
Q: Is the doctrine of in
pari delicto applicable in this ejectment case?
CRIMINAL LAW--Second Circuit Applies Defense of in
Pari Delicto to Racketeer Influence Corrupt Organization Act Claim--Republic of Iraq v.
Under the doctrine of in
pari delicto ("in equal fault"), an auditor cannot lie held liable for negligently failing lo detect wrongdoing or lor even participating in die wrongdoing if the corporation also participated at least equally.
The district court dismissed the plaintiffs' complaint with prejudice for failure to state a claim, holding that even if the NCAA ticket distribution system was an illegal lottery under Indiana law, the doctrine of in
pari delicto barred the claim because the plaintiffs were aware of the essential features of the ticket distribution process when they applied, and they knowingly participated in the disputed process (George, 2009).
Finally, courts have invoked the market power model when holding that dealers or consumers can challenge unlawful agreements they have themselves entered and enforced, contrary to the common law doctrine of in
pari delicto ("in equal fault").
One of the strongest legal weapons available to audit firms sued by shareholders or creditors following revelations of corporate fraud is the defense of in
pari delicto, This legal doctrine, over two centuries old, is grounded in the policy that a court should not intercede between two wrongdoers.
30) The defense of in
pari delicto prohibits a party from recovering damages arising from misconduct for which the party bears responsibility.
27) Conceptually, the in
pari delicto defense will apply "where the fault of the parties is mutual, simultaneous and relatively equal, and where the plaintiff is an active, essential, and knowing participant in the unlawful activity.
Responsibility for Sovereign Debt and the In
Pari Delicto Defense
If sued in such a state for money damages, the defendant may have to rely on legal defenses that cover much the same ground, such as fraud, illegality, (120) or in
pari delicto.
