“Court distinguishes fiduciary duties from professional negligence in landmark ruling”
Bristol and West Building Society sued Mothew, a solicitor who acted for both the society and borrowers in mortgage transactions. The solicitor failed to report that the purchase price had been reduced, which was material information for the lender's decision.
Whether the solicitor's failure to disclose material information constituted a breach of fiduciary duty or merely professional negligence, and what distinguishes these two types of duties.
The Court of Appeal held that the solicitor had breached his duty of care but not his fiduciary duty, as there was no dishonesty or disloyalty involved.
This case provides the definitive modern analysis of fiduciary duties in English law and is regularly cited in cases involving professional negligence and conflicts of interest. It clarified the boundaries between equitable and common law duties.
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OSCOLA Citation
Bristol and West Building Society v Mothew [1998] Ch 1 (CA)
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