A fiduciary duty[3] is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the principal): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. In English common law the fiduciary relation is arguably the most important concept within the portion of the legal system known as equity. In the United Kingdom, the Judicature Acts merged the courts of equity (historically based in Englands Court of Chancery) with the courts of common law, and as a result the concept of fiduciary duty also became available in common law courts. When a fiduciary duty is imposed, equity requires a different, arguably stricter, standard of behavior than the comparable tortious duty of care at common law. It is said the fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without knowledge and consent. A fiduciary ideally would not have a conflict of interest. It has been said that fiduciaries must conduct themselves at a level higher than that trodden by the crowd[4] and that [t]he distinguishing or overriding duty of a fiduciary is the obligation of undivided loyalty..
Posted on: Sun, 17 Nov 2013 17:20:41 +0000
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