Title: Is Loyalty a Virtue, and Even If It Is, Does It Really Help Explain Fiduciary Liability?
Abstract:Abstract A duty of loyalty is often said to be the defining characteristic of the fiduciary relationship, but an examination of the concept of loyalty shows that it is best conceived as a negative vir...Abstract A duty of loyalty is often said to be the defining characteristic of the fiduciary relationship, but an examination of the concept of loyalty shows that it is best conceived as a negative virtue, which is singularly inapt to characterize what fiduciaries owe their principals. Fiduciaries should not act with loyalty to their principals in any normal sense of loyalty: they should not “identify” emotionally with their principals, as one of their main tasks is to make impartial decisions with respect to their principals’ best interests; nor should they give “deliberative priority” to their principals—what they owe their principals is deliberative exclusivity, taking only the interests of their principals into account in exercising their discretions. Taking the leading English case of Boardman v Phipps as a point of departure, the traditional idea that fiduciary liability regulates conflicts of interest in the exercise of discretions is elaborated and defended.Read More
Publication Year: 2014
Publication Date: 2014-08-14
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 4
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