Is there a fiduciary relationship between the borrower and the lender?
California, United States of America
The following excerpt is from Mulville v. Wells Fargo Bank, N.A., B237831 (Cal. App. 2012):
"[A]bsent special circumstances not present here a loan transaction is at arm's length and there is no fiduciary relationship between the borrower and lender. [Citations.]" (Oaks Management Corporation v. Superior Court (2006) 145 Cal.App.4th 453, 466.) Appellants have alleged no special circumstances that would indicate a fiduciary relationship. The complaint accordingly does not allege facts sufficient to state a cause of action for negligence.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
