Does a business relationship between the parties breach a fiduciary duty in tort and contract?
British Columbia, Canada
The following excerpt is from Crown West Steel Fabricators v. Capri Insurance Services Ltd., 2002 BCCA 417 (CanLII):
The respondents submit that the parties had a sophisticated business relationship, and that the respondents were not exercising any unilateral power or discretion with respect to the appellants’ affairs. I agree that the duty breached by the respondents in this case was not a fiduciary one. Specifically, the relationship does not satisfy the second Frame v. Smith criterion. There was no delegated power that could be unilaterally exercised by the respondents, nor was there a conflict of interest that impacted on the appellants’ interests. The decisions on insurance coverage were made by the appellants. The respondents simply failed to advise the appellants with due care. That failure was a breach of their duties in tort and contract, but it was not a breach of any duty of a fiduciary nature.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Does the law of agency apply when one party gives explicit or implicit authority to another party (the principal) to enter contracts with third parties? (British Columbia, Canada)
Can a plaintiff bring a claim against a physician in negligence, breach of contract and breach of fiduciary duty? (British Columbia, Canada)
What is the range of damages for damages for breach of a contract where the contract price of a parcel of land was significantly lower than the value of the land at the time the contract was signed? (British Columbia, Canada)
What is the legal test to enforce a contract where a party is not a party to the contract? (British Columbia, Canada)
Does a successful party have the right to claim special costs when the successful party is in a relationship with an opposing party? (British Columbia, Canada)
Can a vendor who is late in signing a contract with a third party who has been late in entering into the contract, take advantage of the other party's performance? (British Columbia, Canada)
What is the test for repaying a contract where a party has been found to have committed a breach of the contract? (British Columbia, Canada)
What is the scope of the tort of inducing or procuring the breach of contract between a party and the party? (British Columbia, Canada)
Is a fiduciary relationship between parties determined by relationship rather than status or occupation? (British Columbia, Canada)
When a contract is signed and signed, can a party who signed it before and at the time of the contract be found to have misrepresented the agreement? (British Columbia, Canada)
