1. Equity Alysia Debowski alysia@largestprime.net

2. Fiduciary obligations 1. Is there a fiduciary relationship?  Established category?  On the facts? 2. What is the scope of the fiduciary relationship? 3. Were the fiduciary’s obligations breached?  No conflict  No profit 4. Is there a relevant defence?  Disclosure and informed consent 5. What remedy is available for the breach?

3. The Source of Fiduciary Duties Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 at 97 Re Coomber; Coomber v Coomber [1911] 1 Ch 723, per Fletcher-Moulton LJ at 728-9 Aberdeen Railway Co v Blaikie Bros (1854) [1843-60] All ER Rep 249, at 252 Chan v Zacharia (1984) 154 CLR 178, esp per Deane J at 198-9 Lac Minerals Ltd v International Corona Resources Ltd (1989) 61 DLR (4th) 14

4. The Scope of the Fiduciary Relationship N Z Netherlands Society ‘Oranje’ v Kuys [1973] 2 All ER 1222 Noranda Resources Ltd v Lachlan Resources NL (1988) 14 NSWLR 1 Blythe v Northwood (2005) 63 NSWLR 531 Farah Constructions P/L v Say-Dee P/L (2007) 236 ALR 209; [2007] HCA 22 (24 May 2007)

5. The Recognised Categories of Fiduciary Relationships Solicitor and Client Boardman v Phipps [1967] 2 AC 46 Queensland Mines Ltd v Hudson (1978) 52 ALJR 399 Farrington v Rowe McBride and Partners [1985] 1 NZLR 83 Maguire v Makaronis (1997) 188 CLR 449

6. The Recognised Categories of Fiduciary Relationships (cont.) Director and Company Bell v Lever Brothers [1932] AC 161 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134 Peso Siver Mines Ltd (NPL) v Cropper (1966) 58 DLR (2d) 1 Canadian Aero Services Ltd v O’Malley (1973) 40 DLR (3rd) 371 Queensland Mines Ltd v Hudson (1978) 18 ALR 1 Mordecai v Mordecai (1988) 12 NSWLR 58

7. The Recognised Categories of Fiduciary Relationships (cont.) Trustee and Beneficiary Partners Birtchnell v Equity Trustees (1929) 42 CLR 384 Chan v Zacharia (1984) 154 CLR 178 United Dominions Corp Ltd v Brian Pty Limited (1985) 157 CLR 1 Ravinder Rohini Pty Ltd v Krizaic (1991) 105 ALR 593

8. The Recognised Categories of Fiduciary Relationships (cont.) Employee and Employer DPC Estates Pty Ltd v Grey & Anor [1974] 1 NSWLR 443 Hivac Ltd v Park Royal Scientific Instruments Ltd [1946] Ch 169 Printers & Finishers v Holloway [1965] RPC 239 Industrial Development Consultants Ltd v Cooley [1972] 1 WLR 443 British Reinforced Concrete v Lind (1917) 86 LJ Ch 486 Sterling Engineering Co v Patchett [1955] 1 All ER 369

9. The Recognised Categories of Fiduciary Relationships (cont.) Agent and Principal Haywood v Roadknight [1927] VLR 512

10. Other Relationships Broker and Client Hewson v Sydney Stock Exchange [1968] 2 NSWR 224; 87 WN (NSW) Pt 1 422 Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371 Commercial Transactions Keith Henry & Co v Stuart Walker & Co Pty Ltd (1958) 100 CLR 342 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 4 LAC Minerals v International Corona Resources Ltd (1989) 61 DLR (4th) 14 Moorgate Tobacco Co Ltd v Phillip Morris Ltd (No 2) (1984) 156 CLR 414 News Limited v Australian Rugby Football League Ltd (1996) 139 ALR 193

11. Other Relationships (cont.) Banker and Customer Commonwealth Bank v Smith (1991) 102 ALR 453 Standard Investments Ltd v Canadian Imperial Bank of Commerce (1985) 22 DLR (4th) 411 Other and Special Relationships Breen v Williams (1996) 70 ALJR 772

12. Breach of Duty: “Conflict of Interest” and “Improper Gain” Prince Jefri Bolkiah v KPMG [1999] 2 AC 222 The Doctrine in Keech v Sandford Keech v Sandford (1726) Sel Cas T King 61; 25 ER 223 Chan v Zacharia (1984) 154 CLR 178

13. Defences: The Duty of Disclosure and Informed Consent Boardman v Phipps [1967] 2 AC 46 BLB Corporation of Australia v Jacobsen (1974) 48 ALJR 372 NZ Netherlands Society v Kuys [1973] 2 All ER 1222 Gemstone Corporation of Australia Ltd v Grasso (1994) 13 ACSR 695

14. Remedies for Breaches of Fiduciary Duty Nocton v Lord Ashburton [1914] AC 932 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Chan v Zacharia (1984) 154 CLR 178 Maguire v Makaronis (1997) 188 CLR 449 Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371 Re Dawson [1966] 2 NSWR 211 Peter Pan Corp Ltd v Corsets Silhouette Ltd [1963] RPC 45; [1964] 1 WLR 96 Timber Engineering Co Pty Ltd v Anderson [1980] 2 NSWLR 488 Hagan v Waterhouse (1992) 34 NSWLR 308 at 360-365F Boardman v Phipps [1967] 2 AC 46 Mordecai v Mordecai (1988) 12 NSWLR 58 Warman International Ltd v Dwyer (1995) 128 ALR 201 Gemstone Corporation v Grasso (1994) 13 ACSR 695

15. Secret Commissions and Equitable Debt Metropolitan Bank v Heiron (1880) 5 Ex D 319 Boston Deep Sea Fishing and Ice Co v Ansell (1888) 39 Ch D 389 Lister v Stubbs (1890) 45 Ch D 1 A-G (Hong Kong) v Reid [1994] 1 AC 324 DPC Estates Pty Ltd v Grey [1974] 1 NSWLR 443 Re Stephenson Nominees (1987) 76 ALR 485 Reading v AG [1951] AC 507 Jirna Ltd v Mister Donut of Canada Ltd (1973) 40 DLR (3d) 303

16. Applying the theory… Mary and Martha agree to develop a property in Sydney owned by Mary. Martha will provide her technical expertise and supervise the project. They agree to split the profits. Mary and Martha successfully obtain development consent from the Council. Before a formal agreement can be entered into, Mary and Martha have a falling out. Mary sells the land and makes a substantial profit, as the land already has development approval. Does Martha have a claim against Mary for breach of fiduciary duty? If so, what remedy should Martha seek?

17. Next class Estoppel in Equity and Confidential Information Equity & Trusts, Chapters 5 and 7