“Judges cannot decide cases where they have any financial interest whatsoever.”
Lord Chancellor Cottenham decided a case in favour of the Grand Junction Canal Company while he was a shareholder in the company. Dimes sought to have the decision set aside on grounds of bias after discovering the Lord Chancellor's financial interest.
Whether a judge's financial interest in a case, regardless of size or whether it influenced the decision, automatically disqualifies them from hearing the case.
The House of Lords held in favour of Dimes. The decision was set aside due to the Lord Chancellor's disqualifying interest.
This case established the fundamental rule against judicial bias that remains central to natural justice. It created the absolute prohibition on pecuniary interest and influenced the broader development of bias rules in administrative law.
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OSCOLA Citation
Dimes v Grand Junction Canal Co (1852) 3 HLC 759
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