Alex CH Yeung and Jason Fee on Limiting the Fiduciary’s Account of Profits: But-for Causation? (Trusts & Trustees)

"Limiting the fiduciary’s account of profits: but-for causation?"

Alex C H Yeung (BBA(Law) 2020) & Jason Fee (LLB 2020)

Published in October 2020

Trusts & Trustees

Abstract: In an account of profits for breach of fiduciary duty, courts have understandably required some form of nexus between the breach and the gains to be disgorged, but have otherwise struggled to articulate a precise test. In the recent case of UVJ v UVH, the Singapore Court of Appeal broke new ground by requiring but-for causation, apparently branching off from the Anglo-Australian jurisprudence which advocates a more liberal approach to causation. While the but-for test is practically appealing as a technique well known to various areas of law, this article seeks to assess the normative justifications for such a bold move, in view of the attendant issues of deterrence, the unique policy of fiduciary law, and the juridical nature of an account of profits.