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|Duties to the court|
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Self-dealing is the conduct of a trustee, an attorney, a corporate officer, or other fiduciary that consists of taking advantage of his position in a transaction and acting for his own interests rather than for the interests of the beneficiaries of the trust, corporate shareholders, or his clients. Self-dealing may involve misappropriation or usurpation of corporate assets or opportunities. Self-dealing is a form of conflict of interest.
Political scientists Ken Kernaghan and John Langford, in their book “The Responsible Public Servant”, define self-dealing as “a situation where one takes an action in an official capacity which involves dealing with oneself in a private capacity and which confers a benefit on oneself."
Michael McDonald, Ph.D, Chair of Applied Ethics at The University of British Columbia provides examples based from this book: “You work for government and use your official position to secure a contract for a private consulting company you own” or “using your government position to get a summer job for your daughter”.
Where a fiduciary has engaged in self-dealing, this constitutes a breach of the fiduciary relationship. The principal of that fiduciary (the person to whom duties are owed) may sue and both recover the principal's lost profits and disgorge the principal's wrongful profits.
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