Schipp v Cameron

In the case of Schipp v Cameron, the plaintiff, Schipp, brought an action against Cameron and others, seeking various remedies including equitable compensation, damages for breach of fiduciary duty, and an account of profits. Schipp alleged that Cameron, a solicitor, had engaged in misleading and deceptive conduct in breach of the Trade Practices Act 1974 (Cth) and the Fair Trading Act 1987 (NSW). Schipp further contended that Cameron had breached fiduciary duties, failed to exercise a duty of care, and acted in a manner that was economically oppressive and amounted to economic duress.

The court was tasked with determining whether Cameron had acted in a manner that breached fiduciary duties, whether Cameron owed a duty of care to Schipp, and if the conduct of Cameron amounted to misleading and deceptive conduct. Additionally, the court had to decide whether Cameron’s actions could be considered dishonest under the terms of his professional indemnity insurance policy, and whether such actions triggered an exclusion clause in the policy.

The court found that Cameron had indeed breached fiduciary duties, both as a solicitor and as a joint venturer. It was held that Cameron owed a duty of care to Schipp and that Cameron’s conduct amounted to misleading and deceptive conduct under the relevant statutes. The court also determined that Cameron’s actions did not constitute "dishonest" conduct under the insurance policy, as defined by the policy terms, and thus did not trigger the exclusion clause. The court awarded Schipp equitable compensation for the breach of fiduciary duty, damages for the misleading and deceptive conduct, and an account of profits. The court further ruled that the statutory charge under the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) applied to the insurance moneys, allowing Schipp to directly pursue the insurer.