McKensey v Hewitt

The appeal in *McKensey v Hewitt* concerned a dispute between partners. The primary issue was whether one partner, Mr. Hewitt, had breached his fiduciary duties to the other partner, Mr. McKensey, by failing to disclose certain information and acting in bad faith. The case was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether Mr. Hewitt had breached his duty of good faith and disclosure to Mr. McKensey, and whether this constituted a breach of fiduciary duty. The court also had to consider the appropriate orders to be made in light of its findings.

The Court of Appeal found that the evidence did not support a finding that Mr. Hewitt had breached his fiduciary duty to Mr. McKensey. The court reasoned that the duty of good faith and disclosure owed between partners did not extend to requiring disclosure of information that was not relevant to the partnership's business or that was already in the public domain. Consequently, the court allowed the appeal in part, setting aside certain declarations and orders made by the primary judge concerning the alleged breaches. The court also made specific orders regarding the costs of the second cross-claim and made no order as to the costs of the appeal.