Cole v Miles

Cole (the plaintiff) brought proceedings against Miles (the defendant) in the Supreme Court of New South Wales. The dispute concerned the acquisition of gaming permits by the defendant, which the plaintiff alleged were acquired in breach of a fiduciary duty owed to him. The case was heard on appeal in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the defendant had breached his fiduciary duty to the plaintiff by acquiring the gaming permits, whether the defendant had made full and adequate disclosure of his acquisition to the plaintiff, and what remedies were available to the plaintiff, specifically concerning equitable compensation for loss of opportunity and the application of any presumption regarding the sale price of the permits.

The Court of Appeal considered the principles of fiduciary duty and the "no profit" rule, which prohibits fiduciaries from profiting from their position without full and informed consent. The Court examined the nature of the disclosure made by the defendant to the plaintiff regarding the acquisition of the permits. In relation to remedies, the Court clarified the function of equitable compensation, emphasizing that it is a compensatory, not punitive, remedy. The Court also addressed the question of causation and whether a presumption should apply that the fiduciary would have sold the permits at the highest possible price, ultimately finding that such a presumption was not applicable in this context.

The Court of Appeal made orders in relation to the appeal, the specifics of which are detailed in paragraph 78 of the judgment.