Remedies for breach of fiduciary obligation

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This article is a topic within the subject Equity and Trusts.

Contents

Required Reading

M.W. Bryan & V.J. Vann, Equity and Trusts in Australia (Cambridge University Press, 2012), pp. Textbook Chapter 10 (10.38-40).

Chan v Zacharia (1984) 154 CLR 178 (read 195-205 per Deane J)

Pilmer v Duke Group Limited (2001) 207 CLR 165 ([66]-[84]).

Remedies

[1]Remedies for breach of fiduciary obligation are numerous. Where a breach of obligation also amounts to a breach of contract or a tort, equitable compensation for a breach for breach of the equitable obligation is not subject to the limitations that apply for damages, such as remoteness rules.

Remedies for breach of fiduciary obligation can be distinguished by their objectives:

  • Compensation for loss: equitable compensation (personal remedy)
  • Disgorgement of gain: account of profits (personal remedy) and constructive trust (proprietary remedy)
  • Restitution of property obtained by the fiduciary in breach of obligation: rescission of a gift or contract between the fiduciary and beneficiary, together with constructive (or resulting) trust over property transferred or its traceable proceeds (a proprietary remedy)

This list is not comprehensive, for example, a beneficiary may also be awarded an injunction to prevent future breaches of fiduciary obligation.

End

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References

Textbook refers to M.W. Bryan & V.J. Vann, Equity and Trusts in Australia (Cambridge University Press, 2012).

  1. Textbook, pp 172.
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