Boardman v Phipps [1967]

Facts

  • A solicitor for a trust fund noticed a significant opportunity in the accounts of the company
  • He utilised this opportunity with the knowledge of some of the trustees, making a significant profit for both the trustees and himself

Issue

  • Was the solicitor liable for his personal profit?

Decision

  • Yes

Reasoning

  • The solicitor had acted on information available to him only due to his agency relationship with the trust fund
  • He used this information for his own personal profit, which breached his fiduciary obligation not to make any unauthorised profit
  • Not all of the trustees consented to the profit
  • The solicitor was able to keep a significant equitable allowance for his effort though
  • Lord Denning, in the Court of Appeal (current case in House of Lords) advocated a very significant equitable allowance
RELATED CASE  Anglo Overseas Transport v Titan Industrial Group [1959]

Posted in Commercial Law Revision Notes.

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