What is the test for an ad hoc trust relationship?
Ontario, Canada
The following excerpt is from Pichelli v. Kagalj, 2019 ONSC 168 (CanLII):
This brings me to the question of an ad hoc trust relationship. In Frame v. Smith (1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99]) Wilson J. (in dissent) set out three factors that generally have to be established in order to demonstrate the existence of a fiduciary duty (at paragraph 39): a) The fiduciary has scope for the exercise of some discretion or power. b) The fiduciary can unilaterally exercise that power or discretion so as to affect the legal or practical interests of the beneficiary. c) The beneficiary is peculiarly vulnerable to or at the mercy of the fiduciary holding the discretion or power.
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