Litigation

Chancery Addresses Issue of What Constitutes Fiduciary Relationship

By Francis G. X. Pileggi, Esq.

Stephenson v. Cooke,  Del. Ch., C.A. No. 3110-VCL (Sept. 24, 2008). In this 30-page Chancery Court decision, which is by necessity very factually intensive, the Chancery Court reasoned that a fiduciary relationship did not exist between two close friends, where one had relied extensively on the other to assist with financial affairs. The extensive factual details are indispensable to an understanding of the case but are far more lengthy than I intend to include in this short blurb. 

The key point is the discussion by the Court of when the existence of the fiduciary relationship/duty will be found. Reference to the Court’s analysis on page 6 through 8 are especially helpful in this regard.

Full post as published by Delaware Corporate and Commercial Litigation Blog on October 17, 2008 (boomark / email).