Fiduciary in UK Law

Leading Cases
  • Bristol and West Building Society v Mothew
    • Court of Appeal
    • 24 Jul 1996

    The expression "fiduciary duty" is properly confined to those duties which are peculiar to fiduciaries and the breach of which attracts legal consequences differing from those consequent upon to the breach of other duties. Unless the expression is so limited it is lacking in practical utility. In this sense it is obvious that not every breach of duty by a fiduciary is a breach of fiduciary duty.

    A fiduciary is someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. A fiduciary must act in good faith; he must not make a profit out of his trust; he must not place himself in a position where his duty and his interest may conflict; he may not act for his own benefit or the benefit of a third person without the informed consent of his principal.

    The nature of the obligation determines the nature of the breach. The various obligations of a fiduciary merely reflect different aspects of his core duties of loyalty and fidelity. Breach of fiduciary obligation, therefore, connotes disloyalty or infidelity. Mere incompetence is not enough. A servant who loyally does his incompetent best for his master is not unfaithful and is not guilty of a breach of fiduciary duty.

    A fiduciary who acts for two principals with potentially conflicting interests without the informed consent of both is in breach of the obligation of undivided loyalty; he puts himself in a position where his duty to one principal may conflict with his duty to the other: see Clark Boyce v Mouat [1994] 1 AC 428 and the cases there cited. This is sometimes described as "the double employment rule". Breach of the rule automatically constitutes a breach of fiduciary duty.

    Conduct which is in breach of this duty need not be dishonest but it must be intentional. An unconscious omission which happens to benefit one principal at the expense of the other does not constitute a breach of fiduciary duty, though it may constitute a breach of the duty of skill and care.

  • Bristol and West Building Society v Mothew
    • Court of Appeal
    • 24 Jul 1996

    Equitable compensation for breach of the duty of skill and care resembles common law damages in that it is awarded by way of compensation to the plaintiff for his loss. There is no reason in principle why the common law rules of causation, remoteness of damage and measure of damages should not be applied by analogy in such a case.

  • Gwembe Valley Development Company Ltd v Koshy and Another
    • Court of Appeal
    • 28 Jul 2003

    They arose directly out of the transaction which gave rise to those profits, and the circumstances in which it was made. The fact that Mr Koshy was in a pre-existing fiduciary relationship with the company was not enough, by itself, to bring the case within class 1, any more than it was in Taylor v Davies.

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Books & Journal Articles
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Law Firm Commentaries
  • Employment News: fiduciary duties, NICs, jurisdiction
    • JD Supra United Kingdom
    • Hogan Lovells
    • 13 de Mayo de 2019
    Battle Royal – handling of boardroom dispute was repudiatory breach - The High Court decision in Stobart Group Ltd v Tinkler explores the extent of a director's duties in the context of ...
  • Directors' fiduciary duties to shareholders
    • JD Supra United Kingdom
    • Dentons
    • 5 de Diciembre de 2019
    Most cases which come before the courts in connection with the sale and purchase of a company are brought by buyers against sellers. However, a recent High Court case looked at the sale and purchas...
  • UK Investment Consultants and Fiduciary Management Services Under Investigation
    • LexBlog United Kingdom
    • Reed Smith LLP
    • 15 de Septiembre de 2017
    The UK competition regulator, the Competition and Markets Authority (CMA), will be conducting in-depth investigations of investment consultancy and fiduciary management services after the Financial...
  • Fiduciary or Contractual? Experts' Duties and Conflicting Interests
    • JD Supra United Kingdom
    • White & Case LLP
    • 18 de Enero de 2021
    In the case of (1) Secretariat Consulting Pte Ltd, (2) Secretariat International UK Ltd, (3) Secretariat Advisors LLC v A Company [2021] EWCA Civ 6, the Court of Appeal upheld the decision of the T...
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