What is the test for a fiduciary relationship?

British Columbia, Canada


The following excerpt is from Stewart v. McLean, 2010 BCSC 64 (CanLII):

Justice Sopinka accepted the criteria set forth in Frame v. Smith, 1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99 at 135-36: Relationships in which a fiduciary obligation have [sic] been imposed seem to possess three general characteristics: (1) The fiduciary has scope for the exercise of some discretion or power. (2) The fiduciary can unilaterally exercise that power or discretion so as to affect the beneficiary’s legal or practical interests. (3) The beneficiary is peculiarly vulnerable to or at the mercy of the fiduciary holding the discretion or power.

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