‘The Method In Fiduciary Law’s Mixed Messages’

“American courts routinely pay homage to Benjamin Cardozo’s classic statement in Meinhard v Salmon (1928) that fiduciaries owe their beneficiaries a ‘duty of the finest loyalty’ that is ‘stricter than the morals of the marketplace’. In practice, however, courts rarely set aside fiduciary decisions in the absence of an unauthorized conflict of interest or other flagrant abuse of power. Critics argue that this divergence between fiduciary law’s uncompromising rhetoric and the more modest reality of judicial deference is an embarrassment …” (more)

[Evan Criddle, Oxford Business Law Blog, 13 April]

First posted 2017-04-14 07:20:59

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