The onus on a defaulting trustee under [name withheld] v [name withheld] to prove that a release was given with full knowledge of all circumstances applies equally to fiduciaries such as co-unitholders and to knowing assistants. A defaulting trustee or fiduciary who has lied to a beneficiary in response to enquiries about the breach will be unable to satisfy the 'fair and equitable' test for enforceability of the release. The clean hands doctrine can defeat an equitable estoppel defence where the respondent's misconduct in connection with the underlying breach and the negotiation of the settlement has an immediate and necessary relation to the equity sued for.
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