In Malik v. Nihar , Malik filed a case to recover the cost of car insurance premiums he had paid to Nihar, the owner of a livery cab company.
Malik, a cab driver with a poor driving record, was unable to obtain car insurance. In order to continue operating his cab, Malik came to agreement with Nihar where in exchange for insurance coverage through Nihar's company, Malik sold his vehicle for $600 and paid $4,300 upfront for five and a half months of insurance payments.
Ten days later, Malik was in an automobile accident and totaled the car. While the insurance company paid Nihar $8,248, he only gave Malik $4,000.
After finding that Nihar had been "unjustly enriched" the Kings County Civil Court awarded Malik $4,316.50.
On appeal, the Appellate Term, Second Department, reversed and dismissed the lawsuit. The AT2 refused to grant Malik relief because of his "unclean hands," and offered the following quote from another case:
"It is the settled law of this State (and probably every other State) that a party to an illegal contract cannot ask a court of law to help him carry out his illegal object … For no court should be required to serve as paymaster of the wages of crime, or referee between thieves. Therefore, the law will not extend its aid to either of the parties or listen to their complaints against each other, but will leave them where their own acts have placed them." (Ford v. Henry, 155 Misc 2d 192, 193-194 [App Term, 2d & 11th Jud Dists 1993], quoting Stone v. Freeman, 298 NY 268, 271 [1948], citing Schermerhorn v. Talman, 14 NY 93, 141 [1856]).
Purell , anyone?
To download a copy of the Appellate Term's decision, please use this link: Malik v. Nihar