A corporate settlement agent owes fiduciary duties to a third party where its controlling mind owes fiduciary duties to that third party in his personal capacity and the settlement directly affects the third party's interests. Conscious awareness of the facts giving rise to a conflict is not required for breach of the conflict rule; the test is objective. The expression 'conflict of interest' in the Settlement Agents' Code of Conduct 1982 (WA) encompasses both conflicts of interest and duty and conflicts of duty and duty. Where a fiduciary relationship stems from a contract of retainer, the requirement to 'cease to act' under r 9 requires termination of the retainer, not merely cessation of activity under it.
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