Breach of Fiduciary Duty in UK Law
-
Bristol and West Building Society v Mothew
“
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. 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.
-
HM Revenue and Customs v Holland; Re Paycheck Services 3 Ltd
“
In Fayers Legal Services Ltd v Day, ( unreported) 11 April 2001, a case relating to breach of fiduciary duty, Patten J, rejecting a claim that the defendant was a de facto director of the company and had been in breach of fiduciary duty, said that in order to make him liable for misfeasance as a de facto director the person must be part of the corporate governing structure, and the claimants had to prove that he assumed a role in the company sufficient to impose on him a fiduciary duty to the company and to make him responsible for the misuse of its assets.
-
Pitt and another v Holt and another; Futter and another v Futter and Others
“
If it is voidable, then it may be capable of being set aside at the suit of a beneficiary, but this would be subject to equitable defences and to the court's discretion. The trustees' duty to take relevant matters into account is a fiduciary duty, so an act done as a result of a breach of that duty is voidable. Fiscal considerations will often be among the relevant matters which ought to be taken into account.
-
Target Holdings Ltd v Redferns
“
In such a case the basic rule is that a trustee in breach of trust must restore or pay to the trust estate either the assets which have been lost to the estate by reason of the breach or compensation for such loss.
-
Insolvency Act 1986
... ... A24: Duty of directors to notify monitor of insolvency ... under an enactment, a liability for breach of trust, any liability in contract, tort, delict ... of any misfeasance or breach of any fiduciary or other duty in relation to the company ... ...
-
Trusts (Scotland) Act 1921
... ... subject to or under reservation of a feu-duty or ground annual at such rate and on such ... existing law, be deemed to be fiduciary fiar, or of any ... person to whom the fee or any ... Trustee not to be chargeable with breach of trustfor lending money on security of any ... ...
-
Company Directors Disqualification Act 1986
... ... or, as the case may be, imposes on it the duty to make a disqualification order there is ... fraud in relation to the company or of any breach of his duty as such officer, liquidator, ... (5) Any misfeasance or breach of any fiduciary duty by the director in relation to a company or ... ...
-
Trustee Act 2000
... ... 2010/917), arts. 1(3), 16 ... Part I: The Duty of Care ... 1: The duty of care ... (1) ... (7) (1) A trustee shall not be liable for breach of trust merely because he continues to hold an ... ...
- Can mere incompetence constitute a breach of fiduciary duty?
- Equitable Compensation for Breach of Fiduciary Duty in Scotland: Kidd v Paull & Williamsons LLP
-
Recent Developments Regarding the Misappropriation Theory in Securities Fraud Actions
On 25th June, 1997, the US Supreme Court issued an important decision in which it endorsed an expanded theory of insider trading liability under the federal securities laws. In United States v O'Ha...... ... -tion for securities trading purposes, in breach of a duty owed to the source of the information, ... the government to show a breach of fiduciary duty. The case concerned the liability of James ... ...
-
Shareholder empowerment, steps forward and steps back. Comparative analysis of the US and UK regulations
Purpose: The global financial crisis of 2007-2008 prompted a significant debate on corporate governance and shareholder empowerment. A question arises as to whether shareholders ought to be further...... ... byshareholders on the grounds of a breach of fiduciary duty.Findings –This paper ... Anabtawi, I. and Stout, L. (2008), “Fiduciary duties for active shareholders”,Cornell Law ... ...
-
Blog: What States Should Know About Breach Of Fiduciary Duty
Who can be sued? In England and other common law countries a civil claim for breach of "fiduciary duty" can usually be made against senior public officials involved in corruption. When doe...
- English Court Of Appeal Endorses High Court Approach To Determining Interest Rate Applicable To Equitable Compensation Payment Arising Out Of Breach Of Fiduciary Duty
- Directors' Fiduciary Duties: Inactivity May Be A Breach Of Duty
-
Unicover - Recent Ruling By A New Jersey Appellate Court
... ... Smith ("Smith") had not breached their fiduciary duties to a reinsurer, Reliastar Life Insurance ... , claiming damages of $40 million for (1) breach of fiduciary duty (by selling too much ... ...