Unpacking The Enigma of Equitable Compensation for Breaches in Equity

Journal of Business Law

31 Pages Posted: 22 Jul 2021

See all articles by Weiming Tan

Weiming Tan

National University of Singapore (NUS) - Faculty of Law

Date Written: July 19, 2021


Amidst the relentless commercialisation of equity, the remedy of “equitable compensation” has taken centre stage in recent years. As more commercial disputes confront the courts, judges across various jurisdictions grapple with the enigma of “equitable compensation” to keep it apace with the modern times. The term “equitable compensation” has been used by the legal fraternity to refer to a remedy for loss regardless of the nature of the equitable obligation breached. However, coalescing all loss-based remedies into “equitable compensation” elides the nuances across different types of breaches. This article untangles the different types of breaches in equity, and argues that “equitable compensation” should only be a remedy for loss following a breach of fiduciary duty. To further unpack this remedy, the article proceeds to analyse the first step of its application - the causation requirement. This fundamental question has proven to be a divergent issue, with courts from various jurisdictions adopting different rules.

Keywords: Remedies, Equitable Compensation, Breach of Trust, Breach of Fiduciary Duty, Causation

JEL Classification: K10, K11, K19

Suggested Citation

Tan, Weiming, Unpacking The Enigma of Equitable Compensation for Breaches in Equity (July 19, 2021). Journal of Business Law, Available at SSRN: https://ssrn.com/abstract=3889566

Weiming Tan (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776

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