#6538 - Fiduciary Duties - Equity

OVERVIEW OF RELATIONSHIPS OF TRUST AND CONFIDENCE EQUITY 3 FIDUCIARY DUTIES Fiduciary duties are a relationship of trust or confidence - an undivided loyalty * * * * * * Fiduciary = the person who is trusted - DUTY OF LOYALTY Principal = the person whose needs are fulfilled by the fiduciary The fiduciary is precluded from acting in a way other than in the interest of the person to whom the duty to act is owed Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1. The fiduciary must act selflessly and put their own interests aside No conflict duty No profit duty SS? Even if the fiduciary is acting in the best interests of the client and happens to make a profit, IT IS STILL A BREACH * Boardman v Phipps [1967] 2 AC 46. SS? If the principal consents, it is NOT A BREACH Fiduciary must act in good faith Fiduciary duty = togetherness Proof of a fiduciary duty confers a cause of action or a remedy on a party that may be unavailable at common law * More remedies available in equity Constructive trust Account of profits Injunctions Estoppel Laches (time delay) SS? Even though most equitable remedies do not have a stipulated time, it does not mean that they can sue whenever * Qld Mines v Hudson Even though there can be a close working relationship, this does not mean that there is a fiduciary relationship in place * * No conflict duty Duty verses interest Duty versus duty No profit duty A person who profits at the expense of another, or whose interest conflict cannot be described as being loyal There is an imposition of a loyalty standard EQUITY 4