Green v Bestobell Industries Pty Ltd (1982) 1 ACLC 1

Case Facts for Green v Bestobell Industries Pty Ltd (1982):

Bestobell is a construction company where Green is a senior manager. As the manager, Green knows what Bestobell is working on and what type of projects they are handling at the moment and in the future. 

Due to this, Green has the fiduciary duty towards Bestobell as their manager. Specifically, he must not put his self in a position where he advances in his personal interest by using the information he has about the business activities of Bestobell. 

In line with this, Green used his knowledge that Bestobell is looking into tendering a project. Green used Clara Pty Ltd, a company he established, to go up against the tender of Bestobell. He also made sure that the tender amount of Clara was lesser than the amount Bestobell had stipulated in their proposal. 

Clara was awarded the project and, as a result, Green resigned from his post as the manager of Bestobell. Bestobell filed a case against Green as he had breached his fiduciary duty to gain undisclosed in profits.

Case Issue: 

Did Green breach his fiduciary duty of avoiding conflict of interest by diverting the business possibility for Bestobell to his company?

Case Decision:

The corporate veil was lifted by the court. The court decided that, indeed, Green and Clara is one person. The decision of the courts was Green did breach his duty the fiduciary duty of avoiding conflict of interest because he used his position to access information in order to advance his personal interest.