Topic 4 - Fiduciary Relationships and Obligations Flashcards
In which Jurisdiction does Fiduciary Duties rise in?
- Exclusive jurisdiction
What does a fiduciary actually mean?
Fiduciary acting in BEST INTEREST for the beneficiary
What is the main indication of fiduciary duty?
When beneficary is vulnerable
If I give someone EXCLUSIVE responsibility, does that point towards a Fiduciary Duty?
Yes
If Beneficary heavily relies on Fiduciary, does that point towards a Fiduciary Duty?
Yes
Is a Doctor-Patient fiduciary?
NO, its more so a relationship of ‘professionalism and care’
What did Grimaldi v Chameleon state?
If a person heavily relies on another person to act for the beneficiary’s behalf, then they will be classified as a fiduciary
What are Horizontal v Vertical Relationships?
Vertical - Principal and Agent or Employee and Employee –> Where ONE person acts on behalf of another
Horizontal - Partnership, joint venture –> Both parties kind of owe each other a duty
What did UNITED Dominions Corp Case reinforce?
- Fiduciary typically arise where joint activity arises
When a contract b/w professional and client ends, is there still a fiduciary duty present?
- NO LONGER a fiduciary duty but duty to preserve confidential info remains indefinite
When there is a Breach of Fiduciary Duty, what are the 2 TYPES of breaches?
- Conflicts Rule
- Profits Rule
What is the scope of the Profits Rule?
- Even if profit made without fraud, fiduciaries must account for it. Fiduciary must NOT make a profit unless authorised, even if acting in good faith
What s the key case for Profits Rule?
Regal Hastings
What is the Scope of the Conflicts Rule?
Even where a fiduciary acts honestly and the principal benefits, they may still be liable if a conflict (or possible conflict) of interest exists or if they profit from information obtained via their role.
What is Key Case for Conflicts Rule?
- Boardman v Phipps
Can Fiduciaries avoid liability if the principal gave fully informed consent?
YES
How about for Solicitor’s? They must ADVISE, not just read the document
How might the Trustee escape a Fiduciary Duty?
- If contract clearly delineates relationship w Beneficiary
