What is the nature of the relationship between the parties in determining whether a fiduciary duty exists?

Ontario, Canada


The following excerpt is from 1698496 Ontario Limited et. al. v Zoberi et.al., 2015 ONSC 6565 (CanLII):

This suggests that we must look at the nature of the relationship between the parties in determining whether a fiduciary duty exists. This analysis starts with the decision in Frame v. Smith (1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99) where Wilson J. stated (in dissent at p. 136) that relationships where a fiduciary duty has been imposed are marked by the following three characteristics: a) Scope for the exercise of some discetion or power; b) That power or discretion can be exercised unilaterally so as to effect the beneficiary’s legal or practical interests; and, c) A peculiar vulnerability to the exercise of that discretion or power.

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