JD Equity & Trusts 2022-2023 Topic 4: Duties and Powers of Fiduciaries
JD Equity & Trusts 2022-2023 Topic 4: Duties and Powers of Fiduciaries
JD Equity & Trusts 2022-2023 Topic 4: Duties and Powers of Fiduciaries
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Contents
Prophylactic approach: rules to prevent fiduciaries from
not acting in the exclusive interests of beneficiaries
2 aspects:
Conflict of duties
Conflict of interests
Conflicts of duties
Divided loyalty; eg solicitors – no double employment
Bristol v Mothew (1998): Solicitor acted for the lender and
the purchasers in the mortgage transaction. Market
collapsed.
Millett LJ:
Not every breach by fiduciary is a breach of fiduciary duty
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Conflict of interests
Keech v Sandford (1726)
Conflict of interests
(4) Loans by fiduciaries: Swindle v Harrison (1997)
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Conflict of interests
(5) No secret bribes or
commissions
Reading v AG (1951)
AG for Hong Kong v Reid
(1993)
http://www.icac.org.hk/new
_icac/eng/cases/ddpp/home
page.htm
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Conflict of interests
(5) No secret bribes or commissions (cont’d)
FHR European Ventures LLP v Mankarious (2014)
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Responses?
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“It may be that the time has come when the court should
revisit the operation of the inflexible rule of equity in harsh
circumstances, as where the trustee has acted in perfect good
faith …, and in the belief that he was acting in the best
interests of the beneficiary. … the harshness of it should be
tempered in some circumstances.”
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Post-resignation liability
CMS Dolphin Ltd v Simonet (2001); IDC v Cooley (1972)
Cf Canada: Canadian Aero Services v O’Malley (1973).
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Types of conflicts
Existing client (same matter) conflicts:
simultaneous representation
conflict of duties: Bristol v Mothew
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Lord Millett:
possession of relevant confidential information
Chinese walls sufficient? Organisational arrangements
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Notable cases
Marks & Spencer v Freshfields (2004 CA)
Freshfields
M&S Consortium
Takeover offer
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