Chapter 15 Scenario Questions

Fiorina is a fiduciary for Patrick. Patrick has a successful business which relates to minimizing press coverage of celebrity affairs. The relationship is terminated as Fiorina decides to exploit a business opportunity that she discovered during her time as a fiduciary to Patrick.
Does Fiorina owe any continuing duties to Patrick?

No. All of the duties end once the relationship is terminated.

Yes. Fiorina will be in breach for exploiting the business opportunity but nothing else.

Yes. Fiorina has an obligation to maintain confidence as to any confidential information disclosed during her time as a fiduciary.

Yes. Fiorina will both be in breach for exploiting the business opportunity and has a duty to maintain confidence.

Alesha is a fiduciary for Beñat. Alesha took a bribe from Carlie to ensure she advised Beñat to exploit a particular business opportunity which would be favourable to him. Alesha thought that she was acting in good faith and in Beñat's best interests as the business opportunity was extremely good and would likely benefit Beñat hugely.
Is Alesha liable for acting in breach of fiduciary duty?

Alesha is not liable because the relevant test is one of subjective dishonesty. She believed she was acting in Beñat's best interests.

Alesha is liable because the relevant test is one of objective dishonesty. The reasonable person would not believe she was acting in Beñat's best interests by taking the bribe.

Alesha is not liable because Beñat suffered no loss from Alesha's conduct. Beñat actually benefited and so Alesha cannot be liable.

Alesha is liable because she acted disloyally and in breach of the no-profit rule.

Marlon is a company director. The company is planning to purchase an office building and Marlon goes to look at the building. When he leaves the building, he realizes that there is another office building next door which is for sale. Marlon purchases the second office building for himself.
Has Marlon breached a fiduciary duty?

Marlon has not breached his duty. He was required to assess the first office building which he did, thereby discharging his duty to the company.

Marlon has not breached his duty as he only discovered the second office building when he was leaving and so he was no longer acting in his capacity as director.

Marlon has breached his duty as he has exploited an opportunity that he discovered in his capacity as a fiduciary.

Marlon has breached his duty as there are no circumstances under which he would ever have purchased the second office building for the company.

Xander is a fiduciary for Zack. Xander receives a bribe of £5,000 from Albert for completing various contracts between Zack and Albert's business, which prove to be very profitable for Zack. Xander invests the money in shares and makes an additional profit of £2,000.
According to the Court of Appeal decision in Sinclair Investments (UK) Ltd v Versailles Trade Finance Ltd, what claim is available to Zack?

Zack has no claim against Xander as he suffered no loss and the contracts were profitable.

Zack has a personal claim against Xander for the £5,000.

Zack has a personal claim against Xander for £7,000.

Zack has a proprietary claim against Xander for £7,000.

Xander is a fiduciary for Zack. Xander receives a bribe of £5,000 from Albert for completing various contracts between Zack and Albert's business, which prove to be very profitable for Zack. Xander invests the money in shares and makes an additional profit of £2,000.
According to the Supreme Court decision in FHR European Ventures LLP v Cedar Capital Partners LLC, what claim is available to Zack?

Zack has no claim against Xander as he suffered no loss and the contracts were profitable.

Zack has a personal claim against Xander for the £5,000.

Zack has a personal claim against Xander for £7,000.

Zack has a proprietary claim against Xander for £7,000.

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