Glover v Blumer

The appeal in *Glover v Blumer* concerned an allegation of dishonest and fraudulent design in relation to a fiduciary relationship. The appellant, Glover, sought to establish that the respondent, Blumer, had knowingly participated in a breach of fiduciary duty.

The central legal issues before the court were whether the pleadings sufficiently alleged that Blumer had knowingly participated in a dishonest and fraudulent design, and whether the statement of claim should be struck out on the grounds of insufficiency. The court also considered the effect of consent orders previously made, which declared a fiduciary relationship between the principals but did not identify a specific breach of that duty.

The court reasoned that to establish knowing participation in a dishonest and fraudulent design, the pleadings must identify a breach of fiduciary duty and then allege that the third party (Blumer) had knowledge of that breach. The existing pleadings failed to identify any specific breach of fiduciary duty by the principals, and therefore, could not establish Blumer's knowing involvement in such a breach. The court applied the principles that pleadings must clearly articulate the case to be met and that mere assertions of dishonest conduct are insufficient without supporting factual allegations.

Leave to appeal was granted, but the appeal was ultimately dismissed with costs.