What constitutes a breach of fiduciary duty?

Manitoba, Canada


The following excerpt is from Winnipeg (City) v. Caspian Projects Inc. et al., 2022 MBQB 53 (CanLII):

In the British Columbia Supreme Court in Pirani v. Pirani, 2020 BCSC 974, the court at paragraphs 134 to 142 reviewed the jurisprudence in respect of what type of conduct constitutes a breach of fiduciary duty. The court noted that a fiduciary “is not allowed to put himself in a position where his interest and duty conflict … or ‘may conflict’” (at paragraph 138). The court also noted that the beneficiary of the fiduciary relationship “is entitled to expect that the fiduciary will be concerned solely for the beneficiary’s interest” (at paragraph 141). It was noted that conduct that rises to the level of a breach would include “acting in the face of a conflict, preferring a personal interest, taking a secret profit, acting dishonestly or in bad faith, or a variety of similar or related circumstances” (at paragraph 134).

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