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United Kingdom Leading Case no profit rule

Boardman v Phipps

[1967] 2 AC 46
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1967
StatusBinding authority

Summary

A fiduciary who profits from information or opportunity obtained by virtue of their position holds that profit on constructive trust, regardless of good faith or absence of loss to the trust.

Key Principle

A fiduciary who obtains information and an opportunity by virtue of their fiduciary position holds any profit made on constructive trust for the beneficiaries, even if acting in good faith and the trust suffered no loss.

Area of Law

trusts

Related Cases

Thorne v Kennedy (2017) 263 CLR 85

Prenuptial agreements set aside for unconscionability and undue influence where inequality of bargaining power existed between the parties.

Kakavas v Crown Melbourne Ltd (2013) 250 CLR 392

A casino operator's mere knowledge of a patron's pathological gambling does not constitute unconscionable conduct absent deliberate exploitation of that special disadvantage.

Australian Competition and Consumer Commission v Lux Distributors Pty Ltd [2013] FCAFC 90

A supplier's high-pressure door-to-door sales tactics targeting elderly women constituted unconscionable conduct under the Australian Consumer Law.

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