Equity Ws6 Fiduciary Duties

Front 1

A person in a fiduciary position is not allowed to put himself in a position where his interest and duty conflict

Back 1

Bray v Ford (1896)

Front 2

A fact-based fiduciary duty exists where -
– X has undertaken to act for Y
– Y reasonably believes that X will act exclusively in Y's or X and Y's joint interest

Back 2

LAC Minerals v International Corona (1989)
(Canadian)

Front 3

First instance held that there was FR where C had trusted D to negotiate and instruct professionals for joint benefit in hotel business venture

Back 3

Murad v Al Saraj (2004)

Front 4

Land buyers obtained planning purporting to act for sellers: as “self-appointed agents” they had a FR to sellers and had to account for profit

Back 4

English v Dedham Vale Properties (1978)

Front 5

Self-dealing rule is applied strictly, and courts are unwilling to consider whether there has been an unfair advantage or the merits of the case

Back 5

Ex p Lacey (1802)

Front 6

Self-dealing rule stands on general principle, not allowed ever and requires transactions to be undone

Back 6

Ex p James (1803)

Front 7

Exceptional case where a T retired, played no part in arranging sale had their purchase from trust upheld

Back 7

Holder v Holder (1968)

Front 8

Case where an injunction restrained a trustee from running a business competing with a business carried on by the trust; competition was inevitable because business were so specialised

Back 8

Re Thompson (1930)

Front 9

A court can order fees for trustees if:
– Benefits Bs
– Skills are needed
– Fee is not excessive compared to other professionals

Back 9

Duke of Norfolk's Settlement (1981)

Front 10

A trustee makes a profit out of and by virtue of his trusteeship; he must account for his gain to the beneficiaries

Back 10

Williams v Barton (1927)

Front 11

A trustee became a director where even if all the trust votes had gone against him he would have succeeded; held that he could keep his salary

Back 11

Re Gee (1948)

Front 12

If a directorship is obtained by virtue of using trust property, you have to account

Back 12

Re Macadam (1946)

Front 13

If you were a director before a trustee, you can keep the salary

Back 13

Re Dover Coalfield Extension (1908)

Front 14

Held that a trust lease renewed in favour of the trustee had to be surrendered to the trust; courts will not enquire into the honesty of the transaction

Back 14

Keech v Sandford (1726)

Front 15

Partners holding contracts on trust for the partnership owed a fiduciary duty to each other. Keech v Sandford extended to cover renewal of partnership contracts after the dissolution of the partnership

Back 15

Don King v Warren and Others (2000)

Front 16

A trustee is accountable for profits made out of information or opportunities flowing from trusteeship; this is strictly applied; a court can award remuneration if honest transaction has benefited the trust as well

Back 16

Boardman v Phipps (1967)

Front 17

Cinema case where directors had to account for profit in shares they funded and then sold, which benefited their company and which their company could not otherwise have obtained; strict liability for directors

Back 17

Regal v Gulliver (1942)

Front 18

Case where director failed to get tender for company but encouraged to tender personally; forced to account to former company for his personal gain made

Back 18

Industrial Development v Cooley (1972)

Front 19

A proprietary claim can only be made where use of trust property or opportunity belonging to trust

Back 19

Sinclair v Versailles (2011)