Fiduciary in UK Law

Leading Cases
  • Bristol and West Building Society v Mothew
    • Court of Appeal (Civil Division)
    • 24 Julio 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.

    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. The distinguishing obligation of a fiduciary is the obligation of loyalty.

  • Bristol and West Building Society v Mothew
    • Court of Appeal (Civil Division)
    • 24 Julio 1996

    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.

    It is at this point, in my judgment, that the Society's argument runs into difficulty. 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".

    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.

  • Arklow Investments Ltd and Another v I.D. MacLean
    • Privy Council
    • 01 Diciembre 1999

    In the present context, the concept encaptures a situation where one person is in a relationship with another which gives rise to a legitimate expectation, which equity will recognise, that the fiduciary will not utilise his or her position in such a way which is adverse to the interests of the principal. The existence and the extent of the duty will be governed by the particular circumstances.

  • Gwembe Valley Development Company Ltd v Koshy and Another
    • Court of Appeal (Civil Division)
    • 28 Julio 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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Legislation
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Books & Journal Articles
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Law Firm Commentaries
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Forms
  • Chapter CG42030
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ......Section 6(3) then says that any gains charged to Corporation Tax are not to be charged to Capital Gains Tax. Acting in fiduciary capacity. The only time it is appropriate to make an assessment to Capital Gains Tax on a company is when . the company acts in a fiduciary ......
  • Chapter CTM61515
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ......The meaning of ‘relevant person’ is defined in CTA10/S455 (6) as:. an individual, or. a company which is acting in a fiduciary or representative capacity. The singular term ‘individual’ also encompasses ‘individuals’, (Section 6 Interpretation Act 1978). Equally ......
  • Chapter IHTM14394
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    • HM Revenue & Customs
    ......This is not of itself regarded as a reservation of benefit. The spouses or civil partners hold the property in a fiduciary capacity only and are required to deal with it in accordance with their fiduciary duties. The position is the same even if the donor and spouse or ......
  • Chapter TSEM6243
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ......But he cannot do what he likes with the property. As a trustee he holds the assets in a fiduciary capacity. This means he must exercise rights and powers in good faith for the benefit of beneficiaries. The trust property does not pass to the ......
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