What is the benefit of a claim for breach of fiduciary duty?
The advantage to a business in pursuing a claim for breach of fiduciary duty is the availability of remedies which are not dependant upon proving loss. At common law, the remedy available for breach of a contract of employment is damages, and in the absence of any proof of loss, only nominal damages may be recovered. By contrast, the remedy for a breach of fiduciary duty is either an account of profits, which requires the employee to surrender any profits made as a result of the breach of duty, or equitable compensation. An employer may elect between an order for an account of profits or an order for equitable compensation, and this election need not be made until judgment is entered in its favour. The assessment of equitable compensation by the courts is not fettered by issues of remoteness, foreseeability and contributory causes, which arise in an assessment of damages for breach of contract. In addition to these remedies, the court has the discretion to order that particular assets
