Significance
The noteworthy aspect is that the Court is reluctant to impose fiduciary duties on arm's-length commercial parties, and that such duties should not supplant or amplify other more appropriate causes for action.
| “ |
The consequences attendant on a finding of a fiduciary relationship and its breach have resulted in judicial reluctance to do so except where the application of this "blunt tool of equity" is really necessary. It is rare that it is required in the context of an arm's length commercial transaction. ...the fact that confidential information is obtained and misused cannot itself create a fiduciary obligation. No doubt one of the possible incidents of a fiduciary relationship is the exchange of confidential information and restrictions on its use. Where, however, the essence of the complaint is misuse of confidential information, the appropriate cause of action in favour of the party aggrieved is breach of confidence and not breach of fiduciary duty. |
” |
The decision has also served to consolidate the law in Canada on the nature and use of confidential information, as well as to clarify the nature of fiduciary relationships and duties in Canadian law.
Lac Minerals further confirms the divergence of Canadian common-law jurisprudence on constructive trusts to that of English law, which began to arise in Pettkus v. Becker. While English law is based on the concept of institutional constructive trusts (as it was later described by Lord Browne-Wilkinson in Westdeutsche Landesbank Girozentrale v Islington London Borough Council), Canadian courts have broadened it to include remedial constructive trusts. Australian and New Zealand jurisprudence can be characterized as falling in between the other two.
Read more about this topic: Lac Minerals Ltd. V. International Corona Resources Ltd.
Famous quotes containing the word significance:
“Politics is not an end, but a means. It is not a product, but a process. It is the art of government. Like other values it has its counterfeits. So much emphasis has been placed upon the false that the significance of the true has been obscured and politics has come to convey the meaning of crafty and cunning selfishness, instead of candid and sincere service.”
—Calvin Coolidge (1872–1933)
“It is necessary not to be Christian to appreciate the beauty and significance of the life of Christ.”
—Henry David Thoreau (1817–1862)
“To grasp the full significance of life is the actor’s duty, to interpret it is his problem, and to express it his dedication.”
—Marlon Brando (b. 1924)