What is a Fiduciary?

What is a Fiduciary?

The term “fiduciary” is not well understood by the average citizen.

It was probably best stated  in the simple terms of the following:

” If one person undertakes to act in relation to a particular matter in the interests of another, and has been entrusted with a power of discretion to affect the other’s interests, in a legal or practical sense, so that the other is in a position of vulnerability, then a fiduciary duty exists.”

Williams Lake Indian Band v. Abbey (1992), 1992 CarswellBC 1067, [1992] 4 C.N.L.R. 21, K12,13,SkippJ.(B.C. S.C.)

Other  noted comments on the definition are:

“where by statute, agreement, or perhaps by unilateral undertaking, one party has an
obligation to act for the benefit of another, and that obligation carries with it a discretionary
power, the party thus empowered becomes a fiduciary. Equity will then supervise the
relationship by holding him to the fiduciary’s strict standard of conduct.”

Guerin v. R. (1984), 36 R.P.R. 1, 20 E.T.R. 6, [1985] 1 C.N.L.R. 120, 55 N.R. 161,13 D.L.R. (4th) 321, [1984] 2 S.C.R. 335, [1984] 6 W.W.R. 481, [1984] S.CJ. No. 45,1984 CarswellNat 813,1984 CarswellNat 693, 59 B.C.L.R. 301, f98, Dickson J. (Beetz, Chouinard and Lamer J J. concurring) (S.C.C.)

[In Guerin v. ft, [1985] 1 C.N.L.R. 120 (S.C.C.)] … Dickson J. writing for the majority stated at [p. 137] … that:

… where by statute, agreement, or perhaps by unilateral undertaking, one party has an obligation to act for the benefit of another, and that obligation carries with it a discretionary power, the party thus empowered becomes a fiduciary.

Desjarlais v. Canada (Minister of Indian Affairs & Northern Development) (1988), 1988 CarswellNat 184, [1988] 2 C.N.L.R. 62,18 F.T.R. 316, f9, Strayer J. (Fed. T.D.)

– See more at: http://www.disinherited.com/blog/what-fiduciary#sthash.5GPs6Tw5.dpuf

Trevor Todd

Trevor Todd is one of the province’s most esteemed estate litigation lawyers. He has spent more than 40 years helping the disinherited contest wills and transfers – and win. From his Kerrisdale office, which looks more like an eclectic art gallery than a lawyer’s office, Trevor empowers claimants and restores dignity to families across BC. He is a mentor to young entrepreneurs and an art buff who supports starving artists the world over. He has an eye for talent and a heart for giving back.

More Posts - Website - Google Plus