What is the test for a fiduciary obligation to a beneficiary in a personal injury case?

British Columbia, Canada


The following excerpt is from WJ Packaging Solutions Corp. v Park, 2021 BCSC 316 (CanLII):

The defendant emphasizes the following criteria as the source of fiduciary duties (Frame v. Smith, 1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99 at paras 40-42, 42 D.L.R. (4th) 81): (a) the fiduciary has scope for the exercise of some discretion or power (b) the fiduciary can unilaterally exercise that power so as to affect he beneficiary’s legal or practical interest; and (c) the beneficiary is peculiarly vulnerable to or at the mercy of the person holding the discretion or power.

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