What is a fiduciary duty? - VLF Video Educational Series
Vlf Video Educational Series – Fiduciary Duty
Charles Vethan: Hi, I’m Charles Vethan. Welcome to the Vethan Law Firm P.C.’s Video Educational Series. Today’s topic is fiduciary duty.
Joseph Colvin: Whether the client has been sued or is looking to initiate litigation. Oftentimes the first question they asked us is what is fiduciary duty, after we bring up that terminology in a conversation. At its heart a fiduciary duty is a relationship of confidence and trust that the law and common sense instills in a person based on a special obligation they have to another person.
Charles: Joseph when you are talking about fiduciary duty, not every relationship in a company has a fiduciary duty. Typically, we see a fiduciary duty with directors, officers with the company, senior management. And you may have some employees who owe the company a fiduciary duty, if they are entrusted as you stated, with the secrets of the company or if they are in a position that can direct company operations.
Joseph: Charles as you recall there is a series of cases where even a familiar relationship in an informal situation, the law could impose a fiduciary duty. I think behooves us to give some examples right now.
Charles: The whole concept of being a fiduciary is one of trust and confidence. Typically, in an informal situation, you’ll see a fiduciary relationship between individuals who place a great amount of trust in each other, for example, lawyers and clients, doctors and patients and priests, parishioners. This concept has also expanded to a business or company setting.