Privy Council [1996] C.L.C 186
Cruickshanks, acted for Millar. A dispute arose between two partners over compensation for breach of fiduciary duty. A scheme had been devised to take advantage of the different rates of interest payable for loans of New Zealand Dollars in different parts of the world. R had entered into a settlement without M’s approval and against his wishes having taken steps to conceal what had been calculated on the basis of the completion of the transactions as originally contemplated.
This was a claim for the amount of loss as a result of Rs breach of fiduciary duty not a claim that a fiduciary should account for an unauthorised profit. Although partners had to act honestly and fairly towards each other, this did not mean that one partner could require another to undertake a financial risk to which he had not agreed. The judges held that M could not require R to hold on and be further exposed to financial risk.
