Kendling & Kendling and Anor (No. 4)

Kendling & Kendling and Anor (No. 4) concerned a dispute between the applicants, Kendling & Kendling and another party, and the respondents. The proceedings were heard in the Supreme Court of Victoria.

The central legal issues before the Court were whether the respondents had breached their fiduciary duties owed to the applicants and, if so, what remedies were available to the applicants. Specifically, the Court was required to determine if the respondents had acted in their own interests to the detriment of the applicants and whether they had properly accounted for all dealings.

Watts J found that the respondents had indeed breached their fiduciary duties. The Court applied established principles of fiduciary law, emphasizing the high standard of loyalty and good faith required of fiduciaries. The reasoning focused on the respondents' failure to disclose material information and their engagement in self-dealing, which undermined the trust and confidence inherent in the fiduciary relationship. The Court considered the nature of the relationship between the parties and the specific actions taken by the respondents in light of these duties.

The Court ordered that the respondents account for all profits made as a result of their breaches and pay equitable compensation to the applicants for the losses suffered.