BU231 Chapter Notes - Chapter 5: Fiduciary, Liability Insurance, Eof
Document Summary
Liability of professionals: liability may arise from three relationships generating three causes of action. The contractual relationship generates a breach of contract cause of action. The fiduciary relationship generates a breach of fiduciary duty. The tort of negligent misrepresentation is available when a tory duty of care is owed. In alberta v. elder advocates for alberta society the supreme court of canada identifies 3 characteristics of fiduciary relationships. The fiduciary has undertaken to act in the best interest of the beneficiary. The beneficiary is vulnerable to or at the mercy of the fiduciary"s control of discretion. A legal or practical interest of the beneficiary could be harmed by the fiduciary"s exercise of discretion or control. Conflict of interest: a situation where a duty is owed to a client whose interests conflict with the interests of the professional, another client, or another person to whom a duty is owed. If no conflict of interest is found no liability can be imposed.
