Legal Definitions - in rem suam

In rem suam is a Latin phrase that historically described an action taken by an agent or representative not for the benefit of the person they represent, but primarily for their own personal gain or advantage, often concerning their own property or interests. It signifies a conflict of interest where an individual prioritizes their own benefit over their duty to another.

Here are some examples illustrating the concept of acting in rem suam:

• Imagine a medieval steward entrusted with managing a wealthy landowner's vast estate. The steward's duty is to ensure the estate thrives and generates income for the landowner. However, if the steward secretly diverts a portion of the estate's valuable timber or harvests from its fields to improve his own personal smallholding, or sells them for his own profit without the landowner's knowledge, he would be acting in rem suam. He is using resources under his management for his personal advantage, rather than solely for the benefit of the person he represents.

• Consider a modern-day corporate executive who is responsible for negotiating a significant contract for their company. The executive's role requires them to secure the best possible terms for the company. If this executive, however, intentionally steers the contract towards a supplier in which they secretly hold a substantial personal financial interest, even if that supplier offers less favorable terms to the company, they are acting in rem suam. Their decision is driven by their personal financial gain, prioritizing their own advantage over their fiduciary duty to the corporation.

• Think of a trustee appointed to manage a trust fund established for the benefit of a deceased person's children. The trustee's legal obligation is to invest and manage the assets prudently to maximize returns for the children. If the trustee decides to invest a large portion of the trust funds into a struggling business that the trustee personally owns, hoping to rescue their own failing venture, rather than making sound, diversified investments for the beneficiaries, this would be an act in rem suam. The trustee is using the trust's assets to serve their personal financial interests, directly conflicting with their duty to the beneficiaries.