PJC Business

F IDUCIARY D UTY

PJC 104.1

PJC 104.1

Question and Instruction—Existence of Relationship of Trust and Confidence

QUESTION ______ Did a relationship of trust and confidence exist between Don Davis and Paul Payne ? A relationship of trust and confidence existed if Paul Payne justifiably placed trust and confidence in Don Davis to act in Paul Payne ’s best interest. Paul Payne ’s subjective trust and feelings alone do not justify transforming arm’s-length dealings into a relationship of trust and confidence. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 104.1 submits the existence of an informal fiduciary relation ship, commonly referred to as a “relationship of trust and confidence” or a “confiden tial relationship.” This relationship may arise from moral, social, domestic, or purely personal relationships. Ritchie v. Rupe , 443 S.W.3d 856, 874 n.27 (Tex. 2014); Meyer v. Cathey , 167 S.W.3d 327, 330–31 (Tex. 2005); Thigpen v. Locke , 363 S.W.2d 247, 253 (Tex. 1962); MacDonald v. Follett , 180 S.W.2d 334, 337 (Tex. 1944). Informal fiduciary duties are not owed in business transactions unless the special relationship of trust and confidence existed prior to, and apart from, the transaction(s) at issue in the case. Ritchie , 443 S.W.3d at 874 n.27. Informal fiduciary relationships are distin guished from technical or formal fiduciary relationships such as attorney-client, prin cipal-agent, officer/director-corporation, partner-partner, trustee–cestui que trust, or guardian-ward, which as a matter of law are relationships of trust and confidence. Thigpen , 363 S.W.2d at 253; see also Ritchie , 443 S.W.3d at 868 (holding that officers and directors, or those acting as such, owe a fiduciary duty to the corporation in their directorial actions). The existence of an informal relationship of trust and confidence is usually a question of fact. Crim Truck & Tractor Co. v. Navistar International Transportation Corp. , 823 S.W.2d 591, 594 (Tex. 1992). Broad-form submission. PJC 104.1 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in

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