Article: Fiduciary duty

TWO RECENT CASES SHED LIGHT ON WHAT FACTUAL ELEMENTS MUST EXIST IN ORDER TO HOLD A DEFENDANT TO A FIDUCIARY STANDARD OF CARE

Two recent decisions of the Ontario courts have scrutinized certain relationships with the view to determining whether the law will view them as fiduciary in nature. This is an important threshold question in many lawsuits, giving rise to the possibility that the defendant will be judged differently and by different standards if there is a finding that he or she owed such a duty. Although neither case dealt directly with accountants (one involved an investment adviser and the other directors of an insolvent company), they shed light on the underlying question as to ...

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