Constructive trusts and breach of fiduciary duty

Abstract

It is a contentious question whether a profit made by a fiduciary in breach of duty is held by him on trust for his principal from the moment of its receipt, or whether the false fiduciary is only liable to be ordered by a court to pay over to the principal the amount of his gain. The argument made in this article is that the reasons for the finding by some courts of an immediate trust are unconvincing, and that the recent refusal of the English courts to do so is to be applauded.

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