INTRODUCTION
We return to the subject of a fiduciary’s duty to account to his or her principal (or in a trust context, a trustee’s duty to account to his or her beneficiary) for profits derived from an unauthorised use of an opportunity or knowledge belonging to or deriving from his or her principal. This is prompted by discovering the case known as Recovery Partners v Rukhadze & Ors is heading to the Supreme Court. The point at issue is explained in an ex tempore judgment of Foxton J dated 20 October 2023: “What link is required between the profits earned by a fiduciary and the breach of fiduciary duty before those profits will fall within the scope of a duty to account”.1 The profits in question resulted from an agreement to provide recovery services to the family of a deceased Billionaire. The opportunity to provide such services effectively belonged to the claimants, to whom Mr Rukhadze owed fiduciary duties … (more)
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Toby Graham and David Russell, Account of profits – the link between profits earned and the breach of the fiduciary duty, Trusts and Trustees, volume 30, issue 3, April 2024, pages 111–117. Published: 2 April 2024.
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