What is the test for a fiduciary obligation on a beneficiary in a personal injury relationship?
Ontario, Canada
The following excerpt is from Zabanah v. Capital Direct Lending Corp. et al, 2014 ONSC 2219 (CanLII):
In Frame v. Smith, 1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99, at p. 136, in the language adopted and added to in Alberta, Wilson J. stated: Relationships in which a fiduciary obligation have been imposed seem to possess three general characteristics: (1) The fiduciary has scope for the exercise of some discretion or power. (2) The fiduciary can unilaterally exercise that power or discretion so as to affect the beneficiary’s legal or practical interests. (3) The beneficiary is peculiarly vulnerable to or at the mercy of the fiduciary holding the discretion or power.
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