Tito v Waddell Ch 106 is an English trusts law case, concerning what counts as a trust, and creates fiduciary duties, and when specific performance will be ordered. We do not provide advice. A mining company, after finishing mining operations on an island, failed to replant tress as required by the contract; Issue. 0000007952 00000 n Uploaded By FyazR. In duration, No. Self dealing" • (Self dealing rule - trustee cannot sell trust property to himself) is not allowed, however in very few circumstances it is allowed: • Normally the trustee would have to ask beneficiary's permission; take a step back from negotiations; and offer a fair market price. Even when Caine’s paid market price to property or the highest bidder at auction, The case of Tito v Waddell , the transaction has ben set aside by beneficiary unless the trsutee can show that he has taken no advantage of his position and has made full disclosure to the beneficaiary to ensure the transaction is fair and honest. Megarry LJ defined both Fair dealing and self-dealing in the case of Tito v. Waddell The purchase 'is not permitted' per Lord Eldon Ex parte James 1803, whatever the circumstances. x�b```b``�g`2v3�1 +;G��#�@#� �SA��l�o<6���'�����ˮ��^}*�0*z����r͚f c��4x}�ɢ�Ub�\����m)z�x�uW;��GG*~���� �E֗��������ĵ�F��b��ܻ듮f���4�?�a�ca�XH$nݭʊ��g=�����DE�i*��B�&��eAGGGн!�QH��Ń! %%EOF 0000011048 00000 n 0000006483 00000 n As ever, the matter is one of construction and, in some cases, even use of the word ‘trust’ will not impose a trust at law, as where the word was intended to denote a political not a legal obligation (Tito v Waddell … Such so called "self dealing" can, however, be expressly authorised under the terms of the trust instrument; but even in these cases the trustee will be expected to act fairly and not to the detriment of the beneficiaries. 2)9 Megarry V.-C. referred to two technical rules relating to deeds as, at least in part, the origin of the principle that he who takes the benefit of a transaction must also bear the burden. The self-dealing rule is . 0000001118 00000 n Tito V. Waddell (No. The self-dealing rule is applied most often in relation to trusts; namely, where – during their administration of a trust – a trustee wishes to purchase the trust property or a beneficiary’s interest under the trust. This site uses cookies to improve your experience. 0000007126 00000 n To exercise reasonable care, skill and diligence 5. This is prohibited under the no self-dealing rule and therefore these transactions are always VOIDABLE by principals. 2) (para 41): … if a trustee sells the trust property to himself, the sale is voidable by any beneficiary ex debito justiciae, however fair the transaction. 0000002660 00000 n ⇒ Tito v Waddell (No 2): where a trustee deals with the beneficial interest or acquires it, there will be an obligation to demonstrate fair dealing (Megarry VC) i.e. In this case, the court considered the self-dealing rule from an earlier case Tito v Waddell (No2) that, where a trustee purchases property from a trust, the sale is voidable by any beneficiary under the trust however fair the transaction, as a matter of right and arising out of principles of justice. See M Conaglen, ―A Reappraisal for the Fiduciary Self-Dealing and Fair-Dealing Rules‖ [2006] Cambridge Law Journal 366. 106, 332, a decision which has proved controversial, Sir Robert Megarry V.-C. said that, as a matter of fundamental principle, the question of damages was 'not one of making the defendant disgorge' his gains, in that case what he had saved by committing the wrong, but 'one of compensating the plaintiff.' 457 0 obj <> endobj The self-dealing rule is (in the words of Megarry V-C in Tito v Waddell (No 2) 8) that: if a trustee sells the trust property to himself, the sale is voidable by any … A mining company, after finishing mining operations on an island, failed to replant tress as required by the contract; Issue. Tito v Waddell Self-dealing rule arises where F deals with the trust in his personal capacity for the beneficiaries - so where F acts as both the buyer and seller of trust property. 0000012860 00000 n 161 megarry vc in tito v waddell no 2 162 enunciated School United International University; Course Title ENGLISH 103; Type. In respect of the rule against self dealing for trustees ‘But of course equity looks beneath the surface, and applies its doctrines to cases where, although in form a trustee has not sold to himself, in substance he has. Cases & Articles Tagged Under: Tito v Waddell (No. He attempted to renounce his executorship. To promote the success of the company 3. In short, the trustee cannot sell th… 1941). 2) [1977] (para 41): … if a trustee sells the trust property 0000004997 00000 n It stands as an historical example of … 0000007284 00000 n 0000004747 00000 n 0000016871 00000 n [1977] to the company. Tito v Waddell (No 2) [1977] Ch 106 is an English trusts law case, concerning what counts as a trust, and creates fiduciary duties, and when specific performance will be ordered. startxref Reference to both rules can be found in Co.Litt. [1977] to the company. 0000010100 00000 n Tito v Waddell. Nor did he see how the BP Commissioners could be said 2) [1977] Ch 106, the rule states that a fiduciary is barred from dealing on behalf of themselves and the principal in the same transaction. This accords with orthodox formulations in standard English texts … What it overlooks is that you cannot make a contract with yourself … It is true that … 230b10 where the maxim qui sentit commodum sentire debet et onus is also cited.11 Tito v Waddell (No. It is important as an historical case that forced the eviction of the people from the island of Banaba. In Tito v. Waddell (No. 0000011751 00000 n Tito V. Waddell (No. [3] 2 Pomeroy's Equity Jurisprudence § 419b (5th ed. 0000017311 00000 n Banaba island was a British settlement and the land was owned by individual Banabans. a@h&��R���*�. Self dealing" • (Self dealing rule - trustee cannot sell trust property to himself) is not allowed, however in very few circumstances it is allowed: • Normally the trustee would have to ask beneficiary's permission; take a step back from negotiations; and offer a fair market price. Reference to both rules can be found in Co.Litt. Issue 3: self-dealing The third issue will be of most interest to trust practitioners. <<79761148D0D7334691180F128B501F93>]>> The agreement also provided that the com- ^ pany should return all worked-out lands to the original owners, and should " replant such lands—whenever possible—with coconuts and other food-bearingtrees, both in the lands already worked out and in … part t or them their the mean was proposals the lurther milling land on acres the terms though they wanted 'o have them 'he was the l'ctng held for them. 0 129 (1977). It had important advisory and supervisory functions, as well as paramount powers. Nor did he see how the BP Commissioners could be said As Megarry V-C described in Tito v Waddell (No. 4 L Enriques, G Hertig and H Kanda, ―Related-Party Transactions‖, in R Kraakman, J … 0000001793 00000 n The court accepted that the colonial government was a subordinate government, all important decisions being referred to London, and the Crown, on the advice of the United Kingdom Government, having important powers that could be used to override acts of the colonial government. If the question is asked: ‘Will a sale of trust property by the trustee to his wife be set aside?’, nobody can answer it without being told more; for the question is asked in a conceptual form, and manifestly there are wives and wives. 2) [1977] Facts. Page 1 Tito and others v Waddell and others (No 2), Tito and others v Attorney-General (Part 1 of 3) CHANCERY DIVISION [1977] Ch 106, [1977] 3 All ER 129, [1977] 2 WLR 496 Cases & Articles Tagged Under: Tito v Waddell (No. 2)9 Megarry V.-C. referred to two technical rules relating to deeds as, at least in part, the origin of the principle that he who takes the benefit of a transaction must also bear the burden. Homework Help. 0000002970 00000 n Clause 14 and paragraph 18 are addressing different matters. the fair dealing rule , the effect of which6 was summarised by Megarry V-C in Tito v Waddell (No 2)7 as follows: The self-dealing rule is (to put it very shortly) that if a trustee sells the trust property to himself, the sale is voidable by any beneficiary ex debito justitiae, Court could see no sufficient conflict of interest. To declare an interest in a proposed transaction or arrangement Only full case reports are accepted in court. Tito v Wadell (No 2): ChD 1977. 496 0 obj <>stream As Megarry V.-C. made clear in Tito v. Waddell, the self-dealing rule renders voidable a trustee’s purchase of trust property.11 This is a venerable rule, dating from at least the time of Lord King L.C.12 It has been applied consistently through the eighteenth, nineteenth xref 3 See Tito v Waddell (No 2) [1977] Ch106, 241 per Megarry VC. The fair-dealing rule is … that if a … 0000009321 00000 n Tito v Wadell (No 2): ChD 1977. 2), Megarry V.-C. famously described, and differentiated, the two dealing rules, the “self-dealing rule” and the “fair-dealing rule”, that apply to those occupying fiduciary positions: The self-dealing rule is … that if a trustee sells the trust property to himself, the sale is voidable by any beneficiary ex debito justitiae, however fair the transaction. Tito v Waddell (No2) [1977] Uncategorized Legal Case Notes August 29, 2018 May 28, 2019. 2) [1977] Ch 106 | Page 1 of 1 High Commissioner for Pakistan in the United Kingdom v Prince Mukkaram Jah, His Exalted Highness the 8th Nizam of Hyderabad [2016] EWHC 1465 (Ch) 2: and it also required the additional 15 days (between Day 74 and Day 75 of the hearing) that were needed for holding a view of the locus in quo in the circumstances that I have related in Tito v. Waddell [1975] 1 [*125] W.L.R. Holder v Holder. 0000012390 00000 n Not to accept benefits from third parties 7. The rule is a severe one which will apply however honest the circumstances and fair the price. Tito v. Waddell (No. This includes purchases from and sales to the Trust (Tito v Waddell (No 2) [1977] Ch106). Facts. For chancery practitioners Brudenell-Bruce (Earl of Cardigan) v Moore and Cotton provides valuable guidance in a number of areas. . In duration, No. 1303. 106, 332, a decision which has proved controversial, Sir Robert Megarry V.-C. said that, as a matter of fundamental principle, the question of damages was 'not one of making the defendant disgorge' his gains, in that case what he had saved by committing the wrong, but 'one of compensating the plaintiff.' 0000003710 00000 n 161 Megarry VC in Tito v Waddell No 2 162 enunciated the self dealing principle. In Tito v. Waddell (No. 0000006226 00000 n It would be a mere pretence to say that this cost was a loss and so should be recoverable as damages.’ References: [1977] Ch 106, [1977] 3 All ER 129, [1977] 3 WLR 972 Judges: Megarry VC Statutes: Crown Proceedings Act 1947 40(2)(b) Jurisdiction: England and Wales This case cites: These lists may be incomplete.Leading Case Last Update: 27 November 2020; Ref: scu.183016 br>. 0000004369 00000 n Again one must regard the realities. Megarry LJ defined both Fair dealing and self-dealing in the case of Tito v. Waddell The purchase 'is not permitted' per Lord Eldon Ex parte James 1803, whatever the circumstances. It is important as an historical case that forced the eviction of the people from the island of Banaba.On the points of specific performance, it has been superseded in the cases of Ruxley Electronics Ltd v Forsyth. To exercise reasonable care, skill and diligence 5. be as tin: pay or henelit the (tenvcd. 2) [1977] Ch. Tito v Waddell. 2) [1977] Ch. ⇒ Tito v Waddell (No 2): where a trustee deals with the beneficial interest or acquires it, there will be an obligation to demonstrate fair dealing (Megarry VC) i.e. The self-dealing rule operates strictly and as noted in Tito v Waddell (No.2) [1977] the rule is ‘a severe one which will apply however honest the circumstances and fair the price’. Not to accept benefits from third parties 7. This is prohibited under the no self-dealing rule and therefore these transactions are always VOIDABLE by principals. 1 took 106 court days as against the 100 days of No. 48. Newey J took as his starting point the restatement of the rule in Tito v Waddell (No. References: [1977] 1 Ch 107 Coram: Sir Robert Megarry VC Ratio: The liability to account for profits on breach of the self-dealing rule and the fair-dealing rule does not arise from a breach of duty at all. The great obstacle in the way of those remedies was the judgment of Sir Robert Megarry (1910-2006) sitting as Vice-Chancellor in Chancery in the 1976 case of Tito v Waddell concerning the claims of the Banaba islanders against the administration of the phosphate exploitation of their land. 19-10 the secretary group them. Tito v Waddell (No 2) [1977]: Facts are unimportant — concerned islands damaged by phosphate mining. 0000004211 00000 n 2) [1977] Ch 106 | Page 1 of 1 High Commissioner for Pakistan in the United Kingdom v Prince Mukkaram Jah, His Exalted Highness the 8th Nizam of Hyderabad [2016] EWHC 1465 (Ch) Wrotham Park Estate Ltd v Parkside Homes Ltd, Bath and North East Somerset Council v HM Attorney General, The Treasury Solicitor (Bona Vacantia), Wrotham Park Settled Estates v Hertsmere Borough Council, Surrey County Council v Bredero Homes Ltd, Regina v Secretary of State for Home Department ex parte Bancoult, Alfred Mcalpine Construction Limited v Panatown Limited, Newgate Stud Company, Newgate Stud Farm Llc v Penfold, Penfold Bloodstock Limited, Regina v Secretary of State for Foreign and Commonwealth Affairs ex parte Quark Fishing Limited, Manuel and Others v Attorney-General; Noltcho and Others v Attorney-General, Co-Operative Insurance Society Ltd v Argyll Stores, Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services Ltd and Another, Ruxley Electronics and Construction Ltd v Forsyth, Hicks v Russell Jones and Walker: 27 Oct 2000, In re D (Simultaneous applications for care order and freeing order): 1999, VINA SAN PEDRO, THE VINYARD OF – O/363/03: TMR 24 Nov 2003, Anderson v Hills Automobiles (Woodford) Ltd: 1965, EASYPOINTS/EASYPOINTS/EASYJET COM THE WEB’S FAVOURITE AIRLINE/EASYGIRO: TMR 17 Nov 2003, Re Leigh’s Will Trusts; Handyside v Durbridge: ChD 1970, Lockley v National Blood Transfusion Service: CA 1992, Attorney-General v Vernazza, In Re Vernazza: CA 1959, Secretary of State for the Home Department v Central Broadcasting Limited: 1993, Sharpe Re, Ex parte Trustee of the Bankrupt v Sharpe: ChD 30 Jul 1979, James Smith and Sons (Norwood) Ltd v Goodman: CA 1936, Re Chaffers, ex parte Attorney General: 1897, In re National Arms and Ammunition Co: CA 1885, Leech v Secretary of State for Scotland: SCS 1991, National Provincial and Union Bank of England v Charnley: 1924, Davies v Eli Lilly and Co (Opren Litigation): CA 1987, Regina v Board of Visitors of Hull Prison, Ex parte St Germain (No 2): CA 1979, Regina (C) v London South and West Region Mental Health Review Tribunal: CA 2001, In re Progress Assurance Co Ex parte Liverpool Exchange Co: 1870, In re Atlantic Computer Systems Plc: CA 1992, In re ABC Coupler and Engineering Co Ltd (No 3): ChD 1970, In re Lundy Granite Co; Ex parte Heavan: CA 1871. Payments held ‘on trust’ for islanders following compulsory acquisition; whether trust enforceable. Tito v Waddell (No. In Tito v. Waddell (No. It is important as an historical case that forced the eviction of the people from the island of Banaba. 2) (Ch.D.) In one case the trustee may have sold privately to his wife with whom he was living in perfect amity; in another the property may have been knocked down at auction to the trustee’s wife from whom he has been living separate and in enmity for a dozen years.’The issue arose, in relation to ‘the 1931 transaction’, as to whether the acts of which the claimants complained were done on behalf of the Government of the Gilbert and Ellice Islands Colony (in which case no claim lay against the Crown, because excluded by the 1947 Act) or the Government of the United Kingdom (in which case, if a claim lay, it was not excluded). Even when Caine’s paid market price to property or the highest bidder at auction, The case of Tito v Waddell , the transaction has ben set aside by beneficiary unless the trsutee can show that he has taken no advantage of his position and has made full disclosure to the beneficaiary to ensure the transaction is fair and honest. In Tito v. Waddell (No. Page 1 Tito and others v Waddell and others (No 2), Tito and others v Attorney-General (Part 1 of 3) CHANCERY DIVISION [1977] Ch 106, [1977] 3 All ER 129, [1977] 2 WLR 496 2) (Ch.D.) %PDF-1.4 %���� Could damages be award to reflect the profit gained by the mining company by not replanting, rather then to reflect the loss the the land? This includes purchases from and sales to the Trust (Tito v Waddell (No 2) [1977] Ch106). that if a trustee sells the trust property to himself, the sale is voidable by any beneficiary ex debito justitiae, however fair the transaction. To exercise independent judgment 4. The self-dealing rule is applied most often in relation to trusts; namely, where – during their administration of a trust – a trustee wishes to purchase the trust property or a beneficiary’s interest under the trust. Related articles It also contributed much to the governing of the colony, in general and to the 1931 transaction in particular, eg in settling the form of the 1931 lease; but it was not the government.’As to damages: ‘Per contra, if the plaintiff has suffered little or no monetary loss in the reduction of value of his land, and he has no intention of applying any damages towards carrying out the work contracted for, or its equivalent, I cannot see why he should recover the cost of doing work which will never be done. Tito v Waddell Self-dealing rule arises where F deals with the trust in his personal capacity for the beneficiaries - so where F acts as both the buyer and seller of trust property. Newey J took as his starting point the restatement of the rule in Tito v Waddell (No. It is important as an historical case that forced the eviction of the people from the island of Banaba.On the points of specific performance, it has been superseded in the cases of Ruxley Electronics Ltd v Forsyth. 1303. References: [1977] 1 Ch 107 Coram: Sir Robert Megarry VC Ratio: The liability to account for profits on breach of the self-dealing rule and the fair-dealing rule does not arise from a breach of duty at all. Brudenell-Bruce offers salutary lessons about the self-dealing rule, as Simon Atkinson explains ' Brudenell-Bruce provides a restatement of the law relating to estoppel by deed and applies principles of construction to deeds and consent orders.' The judgment reiterates the rigour with which the self-dealing rule will be applied by courts. 2) (Ch.D.) 0000012335 00000 n 1 took 106 court days as against the 100 days of No. The Crown granted a license to a British company to mine the phosphate which had been discovered there. Homework Help. In Tito v Waddell [No 2], the inhabitants of a small and phosphate-rich Pacific Island near Nauru brought proceedings against their former colonising power, the British Crown. 0000002242 00000 n 0000001979 00000 n 0000004503 00000 n Tito v Waddell (No 2) [1977] Ch 106 is an English trusts law case, concerning what counts as a trust, and creates fiduciary duties, and when specific performance will be ordered. In Tito v. Waddell (No. Such so called "self dealing" can, however, be expressly authorised under the terms of the trust instrument; but even in these cases the trustee will be expected to act fairly and not to the detriment of the beneficiaries. In this case, the court considered the self-dealing rule from an earlier case Tito v Waddell (No2) [1977] that, where a trustee purchases property from a trust, the sale is voidable by any beneficiary under the trust however fair the transaction, as a matter of right and arising out of principles of justice. The important element is Megarry’s statement of the law on fair / self dealing. To promote the success of the company 3. ... Megarry V-C did not accept that the BP Commissioners could in any way be sufficiently identified with the resident commissioner to bring the self-dealing rule into play. 2) [1977] Facts. 0000008586 00000 n Uploaded By FyazR. 0000012281 00000 n 0000000016 00000 n The seven general duties owed by directors appear in sections 171-177 and are the duty 1. . As ever, the matter is one of construction and, in some cases, even use of the word ‘trust’ will not impose a trust at law, as where the word was intended to denote a political not a legal obligation (Tito v Waddell … 2), Megarry V.-C. famously described, and differentiated, the two dealing rules, the "self-dealing rule" and the "fair-dealing rule", that apply to those occupying fiduciary positions: The self-dealing rule is ... that if a trustee sells the trust property to himself, the sale is voidable by any beneficiary ex 0000012227 00000 n As Megarry V-C described in Tito v Waddell (No. the fair dealing rule , the effect of which6 was summarised by Megarry V-C in Tito v Waddell (No 2) 7 as follows: The self-dealing rule is (to put it very shortly) that if a trustee sells the trust 2) [1977] Ch 106, the rule states that a fiduciary is barred from dealing on behalf of themselves and the principal in the same transaction. To act within their powers 2. To exercise independent judgment 4. On the points of specific performance, it has been superseded in the cases of Ruxley Electronics Ltd v Forsyth. 0000009472 00000 n 2: and it also required the additional 15 days (between Day 74 and Day 75 of the hearing) that were needed for holding a view of the locus in quo in the circumstances that I have related in Tito v. Waddell [1975] 1 [*125] W.L.R. In short, the trustee cannot sell th… 161 Megarry VC in Tito v Waddell No 2 162 enunciated the self dealing principle. The most famous expression of the self-dealing and fair dealing rules is that of Megarry V-C in Tito v Waddell (No 2) 1. Tel: 0795 457 9992, 01484 380326 or email at david@swarb.co.uk, West of England Shipowners Mutual Insurance Association (Luxembourg) v Cristal Ltd: ComC 25 Jan 1995. 'inn .agtcetnent He bought part of the estate (a farm). Tito v Waddell (No 2); Tito v Attorney General: ChD 1977 Equity applies its doctrines to the substance, not the form, of transactions. The self-dealing rule operates strictly and as noted in Tito v Waddell (No.2) [1977] the rule is ‘a severe one which will apply however honest the circumstances and fair the price’. 0000012625 00000 n trailer Tito v Waddell (No2) [1977] Uncategorized Legal Case Notes August 29, 2018 May 28, 2019. 3 See Tito v Waddell (No 2) [1977] Ch106, 241 per Megarry VC. I N Tito v. Waddell (No. 0000010362 00000 n Rabi. IMPORTANT:This site reports and summarizes cases. 4 L Enriques, G Hertig and H Kanda, ―Related-Party Transactions‖, in R Kraakman, J … 0000005687 00000 n the Mining 1 0 i 7 was which amended Ordinance of removing ot a trust. Could damages be award to reflect the profit gained by the mining company by not replanting, rather then to reflect the loss the the land? To declare an interest in a proposed transaction or arrangement To act within their powers 2. Related articles 0000005075 00000 n See M Conaglen, ―A Reappraisal for the Fiduciary Self-Dealing and Fair-Dealing Rules‖ [2006] Cambridge Law Journal 366. 0000003125 00000 n But the Vice-Chancellor concluded: ‘In my judgment the government of the United Kingdom was not the government of the Gilbert and Ellice Islands Colony at any material time. I regard as plainly untenable Mr Tager's argument that clause 14 can have no application in the present case because paragraph 18 of the First Schedule to the Will is a self-contained code on self-dealing. 0000002617 00000 n 457 40 In Tito v Waddell (No 2), the self-dealing rule was said to apply ‘if the trustee purchases trust property from himself’. 230b10 where the maxim qui sentit commodum sentire debet et onus is also cited.11 In respect of the rule against self dealing for trustees ‘But of course equity looks beneath the surface, and applies its doctrines to cases where, although in form a trustee has not sold to himself, in substance he has. Tito v Waddell (No 2) [1977] Ch 106. Megarry VC: There are two separate rules which govern fiduciaries dealing with trust property: 1. To avoid conflicts of interest 6. Equity applies its doctrines to the substance, not the form, of transactions. ... Megarry V-C did not accept that the BP Commissioners could in any way be sufficiently identified with the resident commissioner to bring the self-dealing rule into play. Tito v Waddell (self dealing rule) Confirmed that self dealing rule is still good law. 0000017103 00000 n The agreement also provided that the com- ^ pany should return all worked-out lands to the original owners, and should " replant such lands—whenever possible—with coconuts and other food-bearingtrees, both in the lands already worked out and in those to be worked out." 161 megarry vc in tito v waddell no 2 162 enunciated School United International University; Course Title ENGLISH 103; Type. To avoid conflicts of interest 6. swarb.co.uk is published by David Swarbrick of 10 Halifax Road, Brighouse West Yorkshire HD6 2AG. See, e.g., Tito v. Waddell, 3 All E.R. The great obstacle in the way of those remedies was the judgment of Sir Robert Megarry (1910-2006) sitting as Vice-Chancellor in Chancery in the 1976 case of Tito v Waddell concerning the claims of the Banaba islanders against the administration of the phosphate exploitation of their land. Tito v Waddell (No 2) Ch 106 is an English trusts lawcase, concerning what counts as a trust, and creates fiduciary duties, and when specific performance will be ordered. 0000002815 00000 n That statute however continues the traditional law with respect to claims of fraud or self-dealing by the trustee of an express trust. 0000009877 00000 n The seven general duties owed by directors appear in sections 171-177 and are the duty 1. Exception to the self dealing rule Son was appointed one of the executors under his father's will. Before making any decision, you must read the full case report and take professional advice as appropriate. 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V Forsyth ( 5th ed Ch106, 241 per Megarry VC ] Uncategorized Legal Notes... Advisory and supervisory functions, as well as paramount powers on an island, failed to tress. British company to mine the phosphate which had been discovered there 's will Fiduciary self-dealing Fair-Dealing... See Tito v Waddell ( No self-dealing the third issue will be most! Reiterates the rigour with which the self-dealing rule and therefore these transactions are always VOIDABLE by principals transaction arrangement...